A Missouri-based construction equipment leasing company that borrowed heavily from the private bond market as it funded its rapid growth saw the prices of that debt drop sharply Friday amid a legal battle with a former board member that has erupted into dueling allegations of fraud and misconduct.
EquipmentShare.com is being sued by Neil Chheda, an early investor and co-founder of venture capital firm Romulus Capital Partners. In a series court claims that stretch back to earlier this year, he alleges company executives defamed him and ousted him from the board after he raised concerns about “self-interested” deals and “sweetheart contracts” benefiting the controlling Schlacks family.