Securities class action settlement proposed for Crocs, Inc. lawsuit

A securities class action settlement was recently proposed for a lawsuit that was previously filed against Crocs, Inc.

The proposed settlement pertains to those who bought the securities of the company between April 2, 2007, and April 14, 2008.

Securities class action filing
The lawsuit involved claims that the stock of the company was impacted during the aforementioned class period because of statements made by the firm's directors that were misleading, according to Bolder County Business Report.

Several purported securities class action suits were originally filed in the United States District Court for the District of Colorado in November 2007, according to a court filing. The various legal claims were consolidated under the caption In re Crocs, Inc. Securities Litigation, 07-cv-02351 by an order dated December 19, 2007.

Brower Piven was appointed as lead counsel for the class on September 17, 2008, and both Antonio Pedrera Sanchez and Fernando Pedrera Sanchez a were appointed as lead plaintiff.

An amended lawsuit naming both Harvey Babbitt and Daniel Lundberg was filed on December 31, 2008. This legal action alleged violations of federal law. It specifically claimed that certain provisions of the Securities Exchange Act of 1934 were breached.

Securities class action settlement hearing
The federal court announced on September 12, 2013, that a hearing would be held on February 13, 2014, to determine several crucial matters. It was declared at the time that the event would take place in Denver, Colorado, at the United States Courthouse, and Honorable Philip A. Brimmer would be preside over the hearing.

A statement revealed that among other things, the hearing was scheduled to determine whether the federal court should approve the proposed settlement fund sum of $10 million in cash as being adequate, reasonable and fair.

In addition, the event was scheduled to determine if the proposed method for allocating the resources should be approved as a result of it being satisfactory and fair.

Another matter that was singled out as being covered in the hearing was a decision related to whether or not the court should certify a settlement class. The event was set up to consider whether, as outlined by the terms and conditions appearing in the Stipulation and Agreement of Partial Class Settlement dated May 14, 2012, the securities class action should be dismissed with prejudice.

Finally, the hearing was scheduled to determine if the court should approve the proposed compensation requested by the counsel of the plaintiffs, which totaled $250,000 in expenses and as much as one-third of the settlement fund, in connection with the securities class action.