US: Fruit of the Loom to pay for lying to analysts

By just-style.com | 22 March 2006

Up to 28,000 Fruit of the Loom shareholders are in for a windfall after a federal judge approved two class-action settlements against the company.

The settlements, which total US$42m, are connected to lawsuits claiming former top officeholders lied to analysts in order to enhance the company's stock.

The suits were brought to court by pension plan agencies plus stock buyers.

According to the settlement terms, affected stock buyers will receive between $1.01 and $4.07 per share, depending on when they bought the stock from the company.

Fruit of the Loom is staying silent on the issue. However, the ruling will come as a blow to the business, which has been working to cut costs after being bought of out bankruptcy in 2002.

Sectors: Apparel, Manufacturing

Companies: Fruit of the Loom