Delia's Settles iTurf Shareholder Class-Action Lawsuit

Share this content:
Delia's Corp., a multichannel retailer to teen-age girls and young women, said last week that it settled a class-action lawsuit brought against it by shareholders in August 2000 relating to its $86 million acquisition of iTurf Inc. and its iturf.com portal.


The settlement calls for Delia to provide more than $3 million in newly issued stock to former iTurf shareholders. The company will issue 1 million shares in the first quarter, the price of which will be adjusted if necessary to provide a minimum value of $3.25 million to shareholders.


CEO Stephen Kahn said in a statement that he's glad the shareholder lawsuit is behind him.


"We continue to believe the suit is without merit, but feel resolving it allows us to eliminate the risks, expense and disruption of continuing litigation and will enable our team to focus exclusively on running the Delia's business," he said.


A week after it merged with iTurf in August 2000, Delia's shut down the company, putting 25 people out of work. As a result of the closure, Delia's took a one-time charge against earnings of $100,000.


Kahn said at the time that "prohibitive investment costs" prompted the decision to close iTurf.


"In conducting a comprehensive review of our online businesses, we decided that the disproportionately high cost of running iTurf.com prohibited ongoing investment," he said.


Loading links....
close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Since 1985, Melissa Data has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa Data offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here