The Lovesac Company issues Notice of Settlement of Shareholder Derivative Actions

Core Viewpoint - The Lovesac Company has reached a settlement in a shareholder derivative action related to breaches of fiduciary duty and financial statement restatements, which is subject to court approval [2][3]. Group 1: Settlement Details - The settlement agreement includes corporate governance reforms that Lovesac will implement and maintain for at least four years [4]. - Lovesac will pay a total of $335,000 in attorneys' fees and expenses to the plaintiffs' co-lead counsel, pending court approval [5]. - Each plaintiff will receive a Service Award of $2,500 from the attorneys' fees and expenses award, also subject to court approval [5]. Group 2: Legal Context - The derivative action asserts claims against the defendants for breaches of fiduciary duty and other legal violations, distinct from a separate securities class action [2]. - Defendants deny all claims and wrongdoing but have opted to settle the action to avoid further litigation [3]. Group 3: Court Proceedings - A fairness hearing is scheduled for October 1, 2025, to determine the approval of the proposed settlement and the attorneys' fees [6]. - Securities holders are not entitled to individual compensation from the settlement, except for the Service Award to plaintiffs [7].