Stock Sales, Harassment Allegations and Power Play: Turbulence Hits PulteGroup

The tides of change seem to be relentless at Atlanta-based PulteGroup, Inc PHM, one of the largest homebuilders in the United States. The company has found itself embroiled in internal disputes and public scrutiny as allegations of poor governance and management issues have come to light.

Power Struggle: Company CEO Ryan Marshall is accused of misusing shareholder funds and participating in a harassment campaign against Bill Pulte and the family Pulte. Grandson of the company's founder and former manager, Bill Pulte has expressed his displeasure with Marshall's management, outlining his allegations in a statement.

"We believe current CEO Ryan Marshall is misusing shareholder funds in Marshall's ongoing harassment campaign against Bill Pulte and the Pulte family, first executed by his lieutenant , Brandon Jones, who used false identities to attack the Pulte Family and who was fired by the board after investigators discovered his actions," read Bill Pulte's statement.

Stock Sales: Adding fuel to the fire, Marshall's stock sales raised some eyebrows. The CEO reportedly sold 100,000 shares worth more than $6.4 million just two months ago, with a total of 171,037 shares sold or converted since the start of the year.

To this end, the Pulte family issued a notice on June 9 indicating that they had taken a significant position in the company, buying 171,037 shares, the same amount sold or converted by Marshall.

"To show our commitment and support to all shareholders who continue to believe in the future of PulteGroup, we have decided to invest $11.9 million and purchase the same number of shares that CEO Ryan Marshall sold,” Pulte said in the statement.

The Pulte family now owns approximately 0.07% of the company.

Legal issues: In addition to internal struggles, PulteGroup faces legal issues. The company is being sued by three former employees who have accused it of fostering a hostile work environment and practicing racial discrimination.

The allegations include a white executive bringing a noose to a meeting and telling employees not to "hang themselves", according to a CNN report.

Pulte expressed a desire to return to the "widely respected greatness" of the company. The family has called for an end to what they perceive to be harassment, bullying, corruption and retaliation within the company.

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