Shareholders Sue Perry Ellis Board

MIAMI (CN) — In a federal class action, shareholders say Perry Ellis International founder George Feldenkreis and his board are taking the company private on the cheap, in a $437 million deal at $27.50 a share.

Though Feldenkreis’ Feb. 6 offer was a 21.6 percent premium over the company’s closing price on Feb. 5, lead plaintiff Colleen Witmer claims the board omitted material information from its proxy statement, lending the statement false and misleading.

A shareholder vote has been set for Oct. 18.

Perry Ellis owns more than a dozen fashion brands, including Farah, Jantzen and Munsingwear.

Plaintiffs seek at least a new proxy statement, an injunction if they do not get it, and costs of suit.

Their lead counsel is Cullin O’Brien, of Fort Lauderdale.

%d bloggers like this: