Shareholder Tries To Stamp Out Shoe Giant's $2B Deal

Law360, New York (May 7, 2012, 8:19 PM EDT) -- An investor slapped Collective Brands Inc. and its leadership with a proposed class action Friday seeking to stop a recently announced $2 billion private equity takeover on the premise that it undervalues the holding company's high-profile shoe businesses.

Filed in Delaware Chancery Court, the suit claims Collective Brands CEO Michael J. Massey and the company's board of directors failed their fiduciary duties by shortchanging shareholders. The investor asked the court to enjoin the transaction.

The $2 billion cash deal announced May 1 would divvy Collective Brands'...
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