SKECHERS U.S.A., Inc. (NYSE:SKX), a global leader in footwear,
today announced the preliminary court approval on September 16,
2014 of the settlement of a pending shareholder derivative action,
entitled Basaraba v. Greenberg, et al., Case No. CV-13-05061-PSG
(SHx) (C.D. Cal.). The settlement is subject to final court
approval. 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 Plaintiff’s Counsels’ fees and expenses and
Plaintiff’s incentive award. Plaintiff’s requests are subject to
the Court’s 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 Plaintiff’s Counsel’s request for
attorneys’ fees and expenses or Plaintiff’s 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
Plaintiff’s 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.
FARUQI & FARUQI, LLPDAVID E. BOWER10866
Wilshire Boulevard, Suite 1470Los Angeles, CA 90024Fax: (310)
461-1427dbower@faruqilaw.com
HYNES KELLER & HERNANDEZ, LLCMICHAEL J.
HYNES1150 First Avenue, Suite 501King of Prussia, PA 19406Fax:
(914) 752-3041mhynes@hkh-lawfirm.com
Attorneys for Plaintiff Gloria Basaraba
O’MELVENY & MYERS LLPSETH ARONSON400
South Hope StreetLos Angeles, CA 90071Fax: (213)
430-6407saronson@omm.com
Attorney for Defendants Robert Greenberg,
Michael Greenberg, Jeffrey Greenberg, David Weinberg, Richard
Siskind, Geyer Kosinski, Morton Erlich, Richard A. Rappaport, and
Thomas Walsh
SHEPPARD MULLIN RICHTER & HAMPTON,
LLPKENNETH A. O’BRIEN, JR.333 South Hope Street, 43rd FloorLos
Angeles, CA 90071Fax: (213) 620-1398kobrien@sheppardmullin.com
Attorney for Nominal Defendant Skechers
U.S.A., Inc.
CLERK OF THE COURTUNITED STATES DISTRICT
COURTCENTRAL DISTRICT OF CALIFORNIAWESTERN DIVISION255 East Temple
StreetLos Angeles, CA 90012
PLEASE DO NOT CONTACT THE COURT OR THE CLERK OF THE COURT
REGARDING THIS NOTICE.
About SKECHERS U.S.A., Inc.
SKECHERS U.S.A., Inc., based in Manhattan Beach, California,
designs, develops and markets a diverse range of lifestyle footwear
for men, women and children, as well as performance footwear for
men and women. SKECHERS footwear is available in the United States
via department and specialty stores, Company-owned SKECHERS retail
stores and its e-commerce website, and in over 100 countries and
territories through the Company’s international network of
subsidiaries in Canada, Brazil, Chile, Japan, and across Europe, as
well as through joint ventures in Asia and distributors around the
world. For more information, please visit www.skechers.com, and
follow us on Facebook (www.facebook.com/SKECHERS) and Twitter
(twitter.com/SKECHERSUSA).
This announcement contains forward-looking statements that are
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include, without limitation, the Company’s future
growth, financial results and operations, its development of new
products, future demand for its products and growth opportunities,
its planned opening of new stores, advertising and marketing
initiatives, and the expansion and automation plans for the
Company’s European Distribution Center. Forward-looking statements
can be identified by the use of forward looking language such as
“believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,”
“project,” “will be,” “will continue,” “will result,” “could,”
“may,” “might,” or any variations of such words with similar
meanings. Any such statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those projected in forward-looking statements. Factors that
might cause or contribute to such differences include the
resignation of the Company’s former independent registered public
accounting firm, and its withdrawal of its audit reports with
respect to certain of the Company’s historical financial
statements; international, national and local general economic,
political and market conditions including the ongoing global
economic slowdown and market instability; entry into the highly
competitive performance footwear market; sustaining, managing and
forecasting costs and proper inventory levels; losing any
significant customers, decreased demand by industry retailers and
cancellation of order commitments due to the lack of popularity of
particular designs and/or categories of products; maintaining brand
image and intense competition among sellers of footwear for
consumers; anticipating, identifying, interpreting or forecasting
changes in fashion trends, consumer demand for the products and the
various market factors described above; sales levels during the
spring, back-to-school and holiday selling seasons; and other
factors referenced or incorporated by reference in the Company’s
annual report on Form 10-K for the year ended December 31, 2013,
and its Form 10-Q for the quarter ended June 30, 2014. The risks
included here are not exhaustive. The Company operates in a very
competitive and rapidly changing environment. New risks emerge from
time to time and the companies cannot predict all such risk
factors, nor can the companies assess the impact of all such risk
factors on their respective businesses or the extent to which any
factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements. Given these risks and uncertainties, you should not
place undue reliance on forward-looking statements as a prediction
of actual results. Moreover, reported results should not be
considered an indication of future performance.
SKECHERS USA, Inc.David WeinbergChief Operating OfficerChief
Financial Officer310-318-3100orInvestor Relations:Andrew
Greenebaum310-829-5400
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