The Law Offices of Frank R. Cruz announces an investigation of Construction Partners, Inc. (“Construction Partners” or the “Company”) (NASDAQ: ROAD) on behalf of investors concerning the Company’s possible violations of federal securities laws.

What Is The Investigation About?

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, Construction Partners’ stock price fell $10.20, or 11%, to close at $82.58 per share on January 23, 2025, thereby injuring investors.