Abercrombie Settles Suits Over False Financial Reports

Law360, New York (November 1, 2011, 7:47 PM EDT) -- Abercrombie & Fitch Co. on Tuesday settled shareholder derivative claims in Ohio accusing company brass of misrepresenting the retailer's financial performance, agreeing to alter its corporate governance and pay plaintiffs' attorneys $1.5 million.

U.S. District Judge Edmund A. Sargus granted preliminary approval to the settlement Tuesday, scheduling a hearing for Dec. 13.

The suits, which the Sixth Circuit revived in April, claim the defendants touted the retailer's financial performance between February 1999 and July 2006 despite their knowledge of negative trends affecting business. When the company's...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.