HD Supply To Pay $50M To End Securities Fraud Suit
Law360 (January 31, 2020, 5:57 PM EST) -- HD Supply Holdings Inc. shareholders urged a Georgia federal judge Friday to greenlight a $50 million settlement resolving securities fraud claims that the company lied about inventory setbacks, calling the proposed deal the second largest class action settlement in the district in two decades.
Investors had accused the Atlanta-based industrial distributor, its CEO Joseph J. DeAngelo and Chief Financial Officer Evan J. Levitt of concealing supply chain deficiencies at the company, which led to a 17.5% drop in share price when the truth came out.
The $50 million all-cash agreement "easily satisfies" the necessary factors for preliminary approval, the proposed investor...
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