(via Today Online)

Professor Robert Daines is quoted by Reuters on retailer Abercrombie & Fitch Co board’s agreement to resolved a lawsuit and whether timing was important in their “incentive to settle.”

Abercrombie & Fitch Co’s board agreed to make governance changes to resolve a lawsuit objecting to its awarding longtime Chief Executive Officer Michael Jeffries more than $140 million of compensation since 2007.

The negotiated settlement, which requires court approval and includes no monetary payment to shareholders, was disclosed on Friday, less than an hour after the underlying lawsuit was filed in the U.S. District Court in Columbus, Ohio.

…

“I don’t see the incentive to settle as being any different before or after a lawsuit is actually filed,” said Robert Daines, a professor at Stanford Law School and co-director of its Rock Center for Corporate Governance.