Posted Apr 23, 2007 02:03 pm CDT
A $41.5 million settlement finalized last month may be one of the largest to require outside directors to dig into their own pockets, the Wall Street Journal reports. (Sub. req.)
The agreement settles a lawsuit brought by a bankruptcy trustee for shoe company Just for Feet Inc., which sought court protection after company executives were accused of inflating earnings. The suit had alleged misrepresentations, conflicts of interest, bad faith and breach of fiduciary duty. The directors did not admit or deny liability.
The directors’ insurance was largely depleted by a previous shareholders’ lawsuit, the newspaper reports.