Construction Partners, Inc. (NASDAQ: ROAD)

This investigation is for anyone who acquired securities in Construction Partners, Inc. (NASDAQ: ROAD) prior to January 23, 2025.

The Law Offices of Howard G. Smith believes that the Company and certain of its executives violated federal law. Specifically, the Law Offices of Howard G. Smith believes that the Company misled investors regarding its financial condition. More specifically, the Law Offices of Howard G. Smith believes that the Company misled investors by telling investors that the Company had in place sufficient financial controls over revenue recognition when the Company lacked such controls.

On January 23, 2025, Spruce Point Research published a report alleging, among other things, that Construction Partners exhibits “poor transparency around financial and operational reporting” including a “[h]igh DSOs relative to industry [which] is often a harbinger of financial restatement risk and/or weak internal controls.” The Spruce Point report further states that “through a FOIA request” it found “evidence that Florida DOT revenues may have peaked and awarded contracts apparently declined by -22% in 2024.” The report also states that Spruce Point “FOIAed the Texas DOT and f[ou]nd no contracts awarded or purchase orders to” the Company’s recently acquired Texas subsidiary “in the last 24 months.” The report alleged the Company may have “misevaluated who is the actual customer in its business dealings” with the Texas Department of Transportation, resulting in “the potential that revenue has been inaccurately recorded.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Construction Partners, Inc. (NASDAQ: ROAD) prior to January 23, 2025 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.