The Lovesac Company announced on June 13, 2025, that parties to the consolidated shareholder derivative action, In re the Lovesac Company Derivative Action, have reached a preliminary settlement agreement.
The Derivative Action asserted claims against defendants for breach of fiduciary duty and other violations related to Lovesac’s restatement of financial statements and admission of internal control weaknesses.
Under the proposed settlement, Lovesac agrees to implement and maintain certain corporate governance reforms for at least four years and to pay attorneys’ fees and expenses totaling $335,000, subject to court approval.
A Fairness Hearing is scheduled for October 1, 2025, to determine whether to approve the proposed settlement as fair, reasonable, and adequate.
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