USA: St John Reports Settlement Of Shareholder Lawsuit
St John Knits International Inc ("St. John") (OTC: SJKI) Monday announced that it has reached an agreement to settle a class action shareholders' lawsuit arising from the $500 million management-led buyout last July. Plaintiffs' counsel had alleged in a class action suit that the $30 per share received by the shareholders in that transaction was inadequate. The company disagrees with this contention and believes that at trial its position would have been vindicated. However, in the interest of eliminating the ongoing drain on management time and corporate resources, the company has concluded that the settlement, as structured, is the most prudent course of action. The terms of the settlement agreement, which is subject to court approval, calls for payment of $13.75 million to St John's former public shareholders and their attorneys. Nearly all of this payment will be funded by St. John's insurance carriers. Additionally, in the event of a sale, merger or public offering of the company, St. John has agreed to provide the class of former shareholders with the opportunity to receive a specified percentage of the proceeds from any such transaction under certain circumstances. St John is a leading designer, manufacturer and retailer of high-end women's clothing. The company also sells accessories, shoes, coats and fragrances. The products, mostly made in the United States by St John itself, are sold in the company's own boutiques and specialty stores such as Saks Fifth Avenue, Neiman Marcus and Nordstrom.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-style gives you the widest apparel and textile market coverage.
Paid just-style members have unlimited access to all our exclusive content - including 17 years of archives.
It’s our best ever membership offer – just for you.
Leonie Barrie, editor of just-style
Help test our new apparel sourcing tool.
- Outlook 2017 – What else is the industry watching?
- Outlook 2017 – What next for apparel sourcing?
- Outlook 2017 – Strategies for sourcing success
- Outlook 2017 – Challenges and opportunities
- Is China about to burst its apparel trade bubble?
- 22 dos and dont's – When sourcing goes wrong
- M&S quality focus finally lifts clothing sales
- MAS Holdings planning second industrial park
- Sri Lanka on track to regain EU GSP+ benefits
- Update - Bangladesh "business as usual"
- Global apparel markets: product developments and innovations, October 2016
- Outdoor performance apparel 2016: A broader perspective
- Global market review of lingerie – forecasts to 2022
- Anti-odour clothing: fresh fashion for an active lifestyle
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar