Skechers U.S.A., Inc. announced the preliminary court approval of the settlement of a pending shareholder lawsuit over alleged false advertising of its toning shoes. As part of the settlement, the plaintiff will request payment of up to
$350,000 for attorney fees and expenses and plaintiffs
incentive award.

The case is Basaraba v. Greenberg, et al., Case No. CV-13-05061-PSG (SHx) (C.D. Cal.). The settlement is subject to final court approval.

According to Skechers 10K, the lawsuit was originally filed in July 2013 and includes allegations of breach of fiduciary duties, gross mismanagement, waste of corporate assets and unjust enrichment based on the development of the companys toning footwear products, advertising and marketing activities relating thereto, and subsequent litigation involving those issues. The complaint sought compensatory damages, a court order directing the company to reform and improve their corporate governance and internal procedures, and attorneys fees, costs and expenses.

The summary notice reads as follows:
                
UNITED STATES DISTRICT COURT
 
CENTRAL DISTRICT OF CALIFORNIA
 
GLORIA BASARABA, Derivatively on
Case No. 13-CV-05061-PSG (SHx)
Behalf of Nominal Defendant Skechers
SUMMARY NOTICE OF PROPOSED
U.S.A., INC.,
SETTLEMENT OF DERIVATIVE
Plaintiff,
ACTION
v.               
ROBERT GREENBERG, MICHAEL
GREENBERG, JEFFREY GREENBERG,
DAVID WEINBERG, RICHARD SISKIND,
Courtroom: 880
GEYER KOSINSKI, MORTON ERLICH,
Judge: Hon. Philip S. Gutierrez
RICHARD A.RAPPAPORT, and THOMAS
WALSH,
Complaint Filed: September 5, 2013
Defendants,               
Trial Date: N/A
-and-               
Skechers U.S.A., INC.,               
Nominal Defendant.
 
NOTICE OF PROPOSED SETTLEMENT OF DERIVATIVE ACTION

TO: ANY OWNER OF Skechers U.S.A., INC.S (Skechers) COMMON STOCK

YOU ARE HEREBY NOTIFIED that pursuant to an Order of the United States District Court for the Central District of California, Western Division, a hearing will be held on November 10, 2014, at 1:30p.m., before the Honorable Philip S. Gutierrez, United States District Judge, United States Courthouse, Courtroom 880, Edward R. Roybal Federal Building, 255 East Temple Street, Los Angeles, CA, 90012, for the purpose of determining whether the Proposed Settlement in the above captioned derivative action (the Derivative Action) should be approved as fair, reasonable and adequate, and whether a judgment dismissing the Derivative Action should be entered. Plaintiff is a Skechers shareholder who filed certain claims against the nine members of Skechers Board of Directors and a former Skechers employee on behalf and in the right of Skechers. In connection with the Settlement, Skechers has agreed to adopt certain corporate governance procedures, and Defendants are being released from liability to Skechers. While continuing to deny all allegations of wrongdoing or liability whatsoever, Individual Defendants have agreed to the Settlement to eliminate the expense, risks, and uncertain outcome of the litigation. As part of the Settlement, Plaintiff will request payment of up to $350,000 for Plaintiffs Counsels fees and expenses and Plaintiffs incentive award. Plaintiffs requests are subject to the Courts approval and will be paid by Defendants directly or through their insurer the amount approved by the Court.

IF YOU ARE A CURRENT OWNER OF Skechers COMMON STOCK YOUR RIGHTS MAY BE AFFECTED BY PROCEEDINGS IN THE DERIVATIVE ACTION.

A more detailed form of notice describing the Settlement is available on the websites of Hynes Keller & Hernandez, LLC, www.hkh-lawfirm.com, and Faruqi & Faruqi, LLP, www.faruqilaw.com.

You can object to the Settlement if you dislike any part of it, or if you disagree with Plaintiffs Counsels request for attorneys fees and expenses or Plaintiffs request for an incentive award. The Court will consider your views. To object, you must file with the Court and send to the parties counsel a signed letter or other written submission saying that you object to the Settlement in Basaraba v. Greenberg, et al., Case NO. CV-13-05061-PSG (SHx). Be sure to include: (i) your name, address, email address, and telephone number; (ii) how many Skechers shares you owned as of January 1, 2008, whether you still own those shares, and the initial purchase date of your shares; (iii) a detailed description of your specific objections to any matter before the Court, and all the grounds for your objections to the Settlement, including any documents you wish the Court to consider; and (iv) your most recent brokerage account statement evidencing current ownership of your Skechers shares and account statements evidencing continuing ownership from January 1, 2008, through the date of the Settlement Hearing. If you want to appear at the Settlement Hearing, you must also state your intention to appear and provide the names of all witnesses, if any, you wish to present at the hearing, along with a statement of the matters on which such witnesses will testify and a summary of their proposed testimony. The objection and any supporting papers must be filed with the Court, by hand, mail, or overnight delivery, and received by Plaintiffs Counsel and Individual Defendants and Skechers Counsel, by hand, mail, overnight delivery, fax, or email, at the addresses provided below no later than October 27, 2014.