Vans, Inc. announced late Friday that it had settled a class action suit related to its merger with a subsidiary of VF Corporation.. VFC in late April agreed to acquire the venerable skate brand in a $396 million deal. Vans will roll up under VFs Outdoor Coalition.
As part of the settlement deal with shareholders, Vans and VF Corp. and have agreed to reduce to $8 million the $10.9 million termination fee that was stipulated under the initial merger agreement. They have also agreed to make certain additional public disclosures.
The suit was brought by Freeport Partners, LLC, on behalf of itself and “all others similarly situated” in Orange County Superior Court and Los Angeles Superior Court against the companies. According to an SEC filing, the suit charged that Vans had with breached its fiduciary duties to shareholders by agreeing to sell itself to VFC at an unfair price.
The companies expect to close the merger this week, pending receipt of regulatory and Vans shareholder approval. A shareholder meeting for Vans is scheduled to occur on June 30 to approve the deal.