ANF: Abercrombie and Fitch Board Members Don’t Want to Sue Themselves

By William Trent, CFA of Stock Market Beat

Ah, those press releases issued after everyone’s gone home for a holiday weekend. In this case, it comes from Mid Cap Watch List and Large Cap Watch List member Abercrombie & Fitch (ANF).

It seems some shareholders filed suit in October 2005 claiming present and former directors breached their fiduciary duty, including:

allegations that the defendants permitted the Company to make false or misleading public statements, certain defendants (including Mr. Jeffries) sold shares of common stock of the Company while in possession of material non-public information and the defendants caused or permitted the Company to engage in certain discriminatory behavior.

The Board of Directors established a Special Litigation Committee to determine whether the company should pursue the claims made against its directors and officers. Apparently the deadline for the report was the Friday afternoon before President’s Day and the report came in just under the wire.

They recommend that the company not pursue the claims. You can read the full release here.

The author may hold a position in the securities discussed. The author’s current holdings are as follows: Long: Union Pacific (UNP) put options; Air Products (APD) put options; Bookham (BKHM; Ballard Power (BLDP); Syntax Brillian (BRLC); CMGI (CMGI); Genentech (DNA); Ion Media Networks (ION); Three Five Systems (TFS); IShares Japan (EWJ); StreetTracks Gold (GLD); Starbucks (SBUX); U.S. Oil Fund (USO); Plantronics (PLT) call options; Short: Landstar (LSTR) put options; Plantronics (PLT) put options;

http://stockmarketbeat.com/blog1/