Just For Feet Inc.

Birmingham, AL: (Apr-24-07) A shareholder lawsuit filed against former executives and directors of Just For Feet Inc. accused the company's former auditor and the estate of company founder, Harold Ruttenberg, of failing to file for bankruptcy in a timely manner, deciding instead to refinance debt. The shareholders alleged that the decision was influenced by personal agendas and conflicts of interest and led to the fire-sale liquidation of the company's assets that generated significantly less money to repay creditors. Ruttenberg has agreed to pay settlements topping $80 million to end a lawsuit stemming from the collapse of the Birmingham retailer. The settlement is believed to be among the largest out-of-pocket payments by outside directors and executives following corporate fraud allegations. [BIRMINGHAM NEWS: COMPANY BANKRUPTCY]

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Published on Apr-27-07