Skechers $9.4 Billion Go-Private Deal Draws Legal Challenge (1)

Skechers USA Inc.‘s massive deal to be acquired by private equity firm 3G Capital shouldn’t go through until the footwear giant’s CEO and president make certain disclosures, a shareholder lawsuit said.

The $9.4 billion take-private merger “raises red flags,” according to the complaint filed in the US District Court for the Central District of California Thursday. It appears that the family that founded Skechers and beneficially owns about 60% of its stockholder voting power “controlled the sales process to a single bidder and deprived the minority stockholders of any legitimate bidding process,” the Key West Police Officers & Firefighters ...