Shareholder Files Lawsuit over $9.4 Billion Skechers Deal

Citing an unfair bidding process, a Skechers shareholder challenges 3G Capital’s $9.4 billion buyout deal.

A lawsuit has been launched against Skechers, the third-largest shoe business in the world, by one of its stockholders. According to the complaint, the plaintiff demanded for information about the $9.4 billion buyout deal with 3G Capital, a well-known private equity firm.

Robert Greenberg, the founder of Skechers, and his family dominate 60% of the voting power of the organization and have limited the sale to favor a single bidder; moreover, they denied minority shareholders’ rights to a fair and legal bidding process. A shareholder filed the complaint in a federal court in Los Angeles on Thursday, criticizing the company's buyout by 3G Capital. A spokesperson for Skechers, Jennifer Clay, declined to give comments ON Friday, stating that the Manhattan Beach-based company would not share details about the current legal lawsuit.

In April, the company pulled back its full-year financial guidance, as many of its footwear products are imported from China and have been affected by tariffs imposed by U.S. President Donald Trump—similar to other footwear manufacturers like Nike. By the third quarter of the year, the deal is expected to end, and Robert Greenberg, who is 85, could receive over $1 billion from it, according to a regulatory filing. In January, the company's stock reached its highest price of $78.82, while the buyout values each share at $63, which is 20% lower than its 52-week high. Companies like Anheuser-Busch InBev and Kraft Heinz have been key targets for the Brazilian firm 3G Capital, which implemented strict cost-cutting measures.