Skechers USA Inc. increased its settlement proposal in April to address a lawsuit brought by hedge funds and other investors contesting the company's $9.4 billion acquisition by 3G Capital. The revised offer would value the shares at $65 each, which the company presented as a settlement figure that is $2 higher than the September acquisition price.
That April bid surpassed an earlier $64-per-share proposal Skechers made during settlement discussions last year, talks that did not result in a resolution. According to those involved in the matter, the newer offer represents Skechers' latest effort to bring the dispute to a close without further litigation.
The plaintiffs in the case have used an appraisal arbitrage approach - acquiring stock after the deal was announced and asking Delaware courts to determine a larger per-share valuation. The group of original investors at the center of the litigation holds about $1.3 billion worth of Skechers shares, a stake that positions the matter to be among the largest appraisal cases to proceed in Delaware.
At present the litigation is at an early procedural stage and no trial date has been set. Investors challenging the buyout contend that founder Robert Greenberg and his son approved a price that was unfair, pointing to market disruption that followed President Donald Trump’s tariff announcements on April 2, 2025. Those tariff measures are said to have affected Skechers’ share price because the company manufactures a substantial portion of its footwear in China and Vietnam.
Skechers' raised offer and the appraisal-arbitrage strategy pursued by opponents of the deal frame the current legal contest as one that hinges on valuation questions and market conditions at the time of the transaction. With significant stakes involved and the case still in its early phases, both sides appear to be positioning for a possible protracted review in Delaware courts unless a settlement is reached.
Contextual note: The information in this article is limited to the details provided about the raised settlement offer, the appraisal-arbitrage strategy used by investors, the size of the investor stake, and the claim that tariff announcements on April 2, 2025, affected Skechers' stock. No trial date has been set.