Monday, April 23, 2007
Five former outside directors of bankrupt Just for Feet Inc. paid $41.5 million to settle a lawsuit brought by the bankruptcy trustee charging them with misrepresentations, conflict of interests, breach of fiduciary duty and bad faith. The company failed in 1999 as a result of an accounting fraud. The settlement is believed to be the largest paid by outside directors. See WSJ, Settlement in Just for Feet Case May Fan Board Fears.