J.Crew and two private equity firms have filed a lawsuit in Delaware Chancery Court against a group of institutional investors, who are among the firm’s shareholders. The New York clothing retailer and its partners allege that the investors reneged on a settlement that both parties agreed upon in January to resolve a previous lawsuit.
Last November, J.Crew agreed to sell itself to TPG Capital and Leonard Green & Partners for $43.50 per share, or, roughly $2.86 billion. The institutional investors, composed of five pension funds, responded with a lawsuit, claiming J.Crew’s directors violated their fiduciary duty to shop for a better price.
