Skechers investors say they were forced to take a bad deal when the company went private
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Skechers investors are suing company executives and Skechers owner 3G Capital over what they say was an unfair sale price in an acquisition earlier this year.3G Capital took the Manhattan Beach-based sneaker company private in a $9.4-billion deal that closed in September and reflected a share price of $63 per share.
In a class action complaint filed this month in Delaware Chancery Court, hedge funds and other large Skechers investors accused the company and 3G Capital of arranging a non-independent deal that shortchanged minority shareholders.Business The Manhattan Beach-based footwear company Skechers will be sold to investment firm 3G Capital for $9.4 billion.The deal undervalued the company as its shares were taking a beating because of a volatile federal tariff policy, the complaint said.
The deal also benefited Skechers President Michael Greenberg and other controlling shareholders, according to the plaintiffs.Plaintiffs seeking a higher share price were unable to reach an early settlement with Skechers after the company made an offer that was slightly higher than the original price, Bloomberg reported this week.According to court documents, 3G Capital had offered a price of $73 per share in March this year, but lowered its offer after Trump’s tariff “liberation day” on April 2.
Investors are now pressing ahead with the case, according to Bloomberg.Skechers said it would not comment on pending legal matters.
Business Trump’s worldwide tariffs are putting the squeeze on several high-profile L.A.-based toy makers and apparel companies.Skechers was one of many footwear and apparel companies that sounded the alarm when Trump passed steep import taxes on countries including China and Vietnam, where many Skechers products are made.The company’s stock price fell 23% in early April after the tariffs were announced.Shares bounced back up 30% after the 3G Capital deal...