Skechers asks Chancery to dismiss investor appraisal claims after settlement talks

Skechers U.S.A. asked the Delaware Court of Chancery to dismiss a number of appraisal actions brought by a group of investment funds seeking a judicial determination of the fair value of their shares following 3G Capital's roughly $9.4 billion take-private acquisition of the company. The funds, which reportedly represent a large block of former Skechers stock, had pressed for a higher valuation than the deal price after earlier settlement negotiations stalled. Skechers is now seeking to end the remaining claims following a settlement, without admitting that the original deal price undervalued the company.

Why it matters. The case is one of the larger pending Delaware appraisal fights, a type of litigation plaintiff-side firms watch because it lets dissenting shareholders challenge merger consideration in court.