LegalApr 28, 2026, 04:39 PM
CHWY Settles Derivative Lawsuit for $29.5M Cash Payment
AI Summary
Chewy, Inc. has reached a settlement in a stockholder derivative lawsuit, Gilbert v. BC Partners LLP, et al., agreeing to a $29,500,000 cash payment to the company. The lawsuit alleged that BC Partners and certain directors breached fiduciary duties by approving an unfair Downstream Merger in October 2023. A Special Litigation Committee conducted an independent investigation, concluding that the settlement is in Chewy's best interest. The Delaware Court of Chancery has scheduled a hearing to consider the settlement for June 23, 2026.
Key Highlights
- Settlement reached in stockholder derivative lawsuit, Gilbert v. BC Partners LLP, et al.
- Defendants to make a $29,500,000 cash payment to Chewy.
- Lawsuit alleged breach of fiduciary duties related to October 2023 Downstream Merger.
- Special Litigation Committee (SLC) conducted an independent investigation from March to December 2025.
- Delaware Court of Chancery hearing on settlement scheduled for June 23, 2026.
- Chewy stockholders will not receive any direct payment from the settlement.