Talbots Investor Challenges $369M Sycamore Buyout

Law360, New York (June 4, 2012, 4:22 PM EDT) -- A Talbots Inc. shareholder on Monday launched a class action to block Sycamore Partners LLC's buyout of the struggling retailer, alleging the board shortchanged investors by accepting the private equity firm's $369 million bid after leaving a higher bid on the table.

Plaintiff Fred W. Schwartz accused Talbots of breaching its fiduciary duty to shareholders in the deal, and Sycamore as well as Sycamore subsidiaries TLB Holdings LLC and TLB Merger Sub Inc. of aiding and abetting that alleged breach.

"The consideration to Talbots common shareholders...
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