The Children's Place settles derivative action

US: The Children's Place settles derivative action

Author: just-style.com | 9 June 2008

Retailer The Children's Place is settling a shareholder derivative action filed in the US District Court alleging misconduct by certain current and former directors and officers of the company in connection with the dating of various option grants.

According to an SEC filing, on May 21 the company and all other parties entered into a stipulation to settle the action entitled Nuttall et al v. Dabah et al. and The Children's Place Retail Stores, which was first filed in January 2007.

The children's wear retailer has also agreed in the stipulation to pay $700,000 of attorneys' fees and reimbursement of expenses to plaintiffs' counsel.

The company and all other defendants have "denied and continue to deny all allegations of misconduct and maintain that their conduct was at all times proper and in compliance with all applicable provisions of law", the SEC filing stated.

The settlement is subject to court approval and on 29 May the court entered a preliminary approval order and scheduled a hearing to be held on 21 July to consider approval of the settlement, Children's Place added.

Sectors: Apparel, Finance, Retail

Companies: The Children’s Place