Abercrombie & Fitch Directors receive report of special litigation committee
17 Feb '07
3 min read
Abercrombie & Fitch Co announced its board of directors has received the report of a Special litigation committee established by the board to investigate and act with respect to claims asserted in certain previously disclosed derivative lawsuits brought against current and former directors and management, including Chairman and Chief Executive Officer Michael Jeffries. The special litigation committee has concluded that there is no evidence to support the asserted claims, has determined it would not be in the best interest of the Company to pursue those claims and has directed the Company to seek dismissal of the derivative actions.
The Derivative Actions:
As previously disclosed, in September 2005, a derivative action, styled The Booth Family Trust v. Michael S. Jeffries, et al., was filed in the United States District Court for the Southern District of Ohio, seeking to assert claims for unspecified damages against present and former directors, alleging various breaches of the directors' fiduciary duty. Four similar derivative actions were filed later in 2005, three in federal court and one in Ohio state court. The Company is a nominal defendant in these actions.
The federal-court derivative actions have been consolidated with certain previously disclosed purported securities law class actions for purposes of motion practice, discovery and pretrial proceedings, under the caption In re Abercrombie & Fitch Co. Derivative Litigation. The Company has fileda motion to stay the consolidated federal derivative case and the time for all other defendants to respond has been extended pending decision of the Company's motion.
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