Lovesac Leaders Get First Nod for Internal Reform Settlement

A settlement agreement by Lovesac Co. directors and officers to implement at least 10 categories of internal corporate reforms over accounting allegations warrants preliminary approval, a federal court said Tuesday.

Judge Victor A. Bolden gave the derivative suit settlement the go-ahead just a day after investors submitted the terms of the deal and their approval request to the US District Court for the District of Connecticut.

• The investors sued on behalf of the company, claiming members of leadership are responsible for accounting improprieties and related misrepresentations, particularly related to the direct-to-consumer furniture brand’s shipping costs
• The proposed reforms, which weren’t ...