Playboy, Hefner To Spend $5.25M To Settle Investors' Suit

Law360, Wilmington (October 2, 2012, 2:17 PM EDT) -- Playboy Enterprises Inc., founder Hugh Hefner and a private equity firm minted a $5.25 million class action settlement on Monday with minority shareholders who claimed they got the shaft when the pop culture icon took the company private in a $206 million buyout in 2011.

The private equity firm that partnered with Hefner in the leveraged buyout, Rizvi Traverse Management LLC, will also contribute to the settlement, which was forged through mediation with retired U.S. District Judge Layn Phillips, according to a memorandum outlining the deal...
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