A federal court on Tuesday approved Donna Karan International Inc's settlement with shareholders who wanted more money from its buy out by French luxury goods giant LVMH Moet Hennessy Louis Vuitton.

LVMH said in late 2000 it would buy the New York-based fashion firm for $8.50 in cash per share. But after six shareholders sued the price was raised by $22 million to $10.75 a share and lawyers agreed to settle the lawsuits.