Restoration Hardware’s Derivative Deal Over Inventory OK’d
Law360 (July 28, 2020, 10:35 PM EDT) — A California federal judge said Tuesday she would preliminarily approve Restoration Hardware’s settlement requiring corporate governance reforms to resolve derivative shareholder litigation alleging that the retailer’s top brass lied about its luxury furniture inventory, costing investors $3 billion.
During a short hearing held via Zoom, U.S. District Judge Yvonne Gonzalez Rogers said the terms of the settlement, which promises corporate governance reforms and divides $1 million for attorneys to cover fees and expenses, are reasonable. She set a final approval hearing for Oct. 6, to be held via Zoom.
If granted final approval, the settlement would resolve derivative shareholder litigation that…