Blue Nile Settles Shareholder Complaint

The e-tailer has agreed to pay $125,000 in attorney fees

Blue Nile has settled a shareholder lawsuit that targeted the e-tailer’s pending merger.

The putative class action suit, filed in the Delaware Court of Chancery, claimed a breach of fiduciary duty for failing to disclose material information in its proxy statement. Blue Nile then filed a supplement to its proxy that included disclosures that covered the plaintiff’s complaints.

Following that, the Delaware Court dismissed the action on Feb. 2, according to a filing from Blue Nile with the Securities and Exchange Commission. Following negotiations, the parties have agreed to a settlement where Blue Nile pays plaintiff’s counsel $125,000 in attorneys’ fees and expenses. This settlement still needs to be approved by the Delaware Court.

It is not clear if the shareholder plaintiffs will receive anything from the settlement.

JCK News Director