Crocs, Inc. Announces Management Changes
Oct 21 14
Crocs, Inc. announced several key management changes. These changes include the appointment of Bob Munroe to general manager of Crocs Americas region; Greg Sullivan to the new role of senior vice president of global business transformation; Scott Yuan to general manager of Greater China; and Michelle Poole to senior vice president of global product creation and merchandising. Veteran footwear and consumer products executive Bob Munroe has been named the new general manager of Crocs Americas region. Before joining Crocs, Munroe spent 10 years with Reebok, most recently as president following the brand's acquisition by Adidas, and previously as senior vice president and general manager for North America; as vice president of sales operations; and as vice president of field sales. Former GM of the Americas Greg Sullivan is assuming the critical new role of senior vice president of global business transformation. In this role, Sullivan will help guide the company's ongoing cultural, organizational and strategic transformation. This will include helping to drive the creation of a merchant-led enterprise and more nimble global and regional organizations. Sullivan previously served as general manager of Crocs Americas region since joining the company in October 2013. In Asia, the company has named Scott Yuan to general manager of Greater China for Crocs. Yuan is an experienced consumer products executive and has been serving as assistant general manager of the company's China business since earlier this year. He will be based in Shanghai and replaces Ted Lee, who will leave the company later this year. Dale Bathum, chief product officer for Crocs since 2012, will transition product leadership responsibilities to Michelle Poole through November 20, 2014, when he will depart to pursue other interests. Michelle Poole has been appointed to the lead global role for product and merchandising, as senior vice president for global product creation and merchandising. Poole joined Crocs in August 2014 after five successful years as senior VP of product for Sperry Top-Sider. In addition to her merchandising role, she will assume all product responsibilities previously led by Bathum.
The U.S. District Court for the District of Colorado Grants Approval of Final Settlement in Securities Fraud Class Action Against Crocs, Inc
Oct 15 14
The U.S. District Court for the District of Colorado granted approval of a final settlement in a securities fraud class action brought by shareholders against a shoe manufacturer arising from alleged misstatements concerning the firm's inventory levels. Shareholders in Crocs Inc. sued the company, certain of its officers and its auditor, Deloitte & Touche L.L.P., alleging violations of 10(2) and 20(1) of the Securities Exchange Act of 1934 arising from misstatements concerning the shoe manufacturer's inventory levels. The court, in a prior order, dismissed the complaint with prejudice for failure to state a claim. While an appeal was pending, the plaintiffs reached a settlement with Crocs and the Crocs officer defendants. The Tenth U.S. Circuit Court of Appeals remanded, and case came before the district court on a joint motion for final approval of the settlement. The district court found that the requirements for class certification under Fed. R. Civ. P. 23(1) were satisfied by the complaint, in that the class representatives' interests were sufficiently aligned with the interests of the settlement class. The fact that one member of the class representatives might be subject to a unique defense arising from its purchase of its Crocs shares through contracts for difference on a foreign exchange did not destroy the ability of the class representatives as a whole to adequately protect the interests of absent class members. In addition, class questions involved common questions of fact and law arising from the allegation that the defendants made misrepresentations about the firm's inventory and management system, and those issues predominated over any questions affecting only individual members. Settlement not result of collusion. The court found no evidence that the settlement was the result of a collusive agreement between the parties, and found it was negotiated against the backdrop of each party's likelihood of success on appeal. Moreover, out of approximately 300,000 notices sent, only 13 putative class members opted out or expressed an interest in doing so. The court found that the settlement amount of $10 million was fair and reasonable given the uncertainty of plaintiffs' ability to achieve success on the merits. Accordingly, and after finding that the remaining relevant factors weighed in favor of approval, the district court granted the parties' motion for final approval of the settlement. The court separately granted the plaintiffs' motion for an award of attorneys' fees and expenses. Plaintiffs' counsel submitted that 3,877.45 hours were spent litigating the action, which, based on the attorney's current rates, had a billable value of $2,436,025. The court held that the difficulty involved in marshalling sufficient facts to prepare the plaintiffs' 176-page complaint was substantial and that counsel engaged in extensive motion practice and appellate briefing. The court noted that courts in the Tenth Circuit routinely awarded fees of approximately 30% of the common fund. The court found that, based on those and other relevant factors, including the fact that the requested fee of $3 million was a 1.23 multiple of the lodestar amount, which was well below what courts in the district typically awarded in collective actions, plaintiffs' counsel was entitled to their requested $3 million award of attorneys' fees, and the court granted the plaintiffs' related motion.
Crocs, Inc. Presents at Goldman Sachs 21(st) Annual Global Retailing Conference, Sep-03-2014 11:20 AM
Aug 26 14
Crocs, Inc. Presents at Goldman Sachs 21(st) Annual Global Retailing Conference, Sep-03-2014 11:20 AM. Venue: The Plaza Hotel, New York, New York, United States. Speakers: Jeffrey J. Lasher, Chief Financial Officer, Principal Accounting Officer and Senior Vice President of Finance.