Vans, Inc. announced late Friday that it had entered into a settlement with the plaintiffs in the purported class action and derivative lawsuits filed against it, VF Corporation and certain current and former directors and officers of Vans in Orange County Superior Court and in Los Angeles Superior Court.
The suit was brought by Freeport Partners, LLC, on behalf of itself and all others similarly situated, vs. Walter E. Schoenfeld et al. and In re Vans, Inc. Derivative Litigation in connection with the proposed merger of Vans with a VF subsidiary.
In connection with the settlement, Vans agreed to make certain additional public disclosures, and Vans and VF agreed to reduce from $10,900,000 to $8,000,000 the termination fee payable by Vans under the circumstances set forth in the Agreement and Plan of Merger, as amended, dated as of April 27, 2004 among Vans, Inc., VF Corporation and McGarrett Corp.
The final settlement of the actions is subject to, among other things, court approval. If this settlement is finalized and approved by the court, it will resolve and discharge in full those claims. The companies expect to close the merger on or promptly after June 30, 2004, pending receipt of regulatory and Vans shareholder approval. A shareholder meeting for Vans is scheduled to occur on June 30, 2004.