The J. Crew Group finally closed the door on its contentious shareholder lawsuit late last week. According to a filing in Delaware Chancery Court, the retailer agreed to settle the suit over its leveraged buyout for $16 million.
The lawsuit, brought by a group of shareholders, alleged that J. Crew failed to get the highest-possible price in its agreement to sell the company to private equity firms TPG Capital and Leonard Green & Partners for $3 billion.
J. Crew had an original settlement plan in place in February that would have paid the disgruntled shareholders $10 million, but the deal was nixed after the company decided not to extend the “go shop” period that would have allowed it to entertain other bids.
After the first settlement plan fell apart, J. Crew incensed the shareholders even further after it scheduled a March 1 meeting to vote on the TPG deal. After another six months of legal wrangling, the two sides finally came to terms on a deal that added $6 million to the settlement.
For more details, read the New York Times.