Jenny Craig Settles Shareholder Suit
- Share via
Jenny Craig Inc., which provides weight loss counseling and low-fat food, settled a lawsuit filed by shareholders who said the stock was undervalued in a $115-million buyout.
The firm said in January that it would be bought by investors including co-founders Sid and Jenny Craig, a Deutsche Bank affiliate and ACI Capital Co. for $5.30 a share.
Shareholders filed three suits in Delaware Chancery Court. After negotiations with investors’ lawyers, the firm agreed to provide more information about the sale process, and the suit was settled.
The settlement, which stockholders concluded was “reasonable and adequate,” is subject to a judge’s approval at a Jan. 28 hearing, according to court papers. At the hearing, shareholders’ lawyers will ask for $220,000 in fees and expenses to be paid by the firm.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
