Chewy, Inc. entered into a settlement agreement to resolve derivative litigation regarding the Downstream Merger, resulting in a $29.5 million cash payment to the Company pending court approval.
Key takeaways
Defendants agreed to pay $29.5 million in cash to Chewy to settle all claims in the derivative litigation.
The settlement resolves claims alleging breaches of fiduciary duties related to the October 2023 Downstream Merger.
A settlement hearing is scheduled for June 23, 2026, at the Delaware Court of Chancery.
The Special Litigation Committee conducted an independent investigation before recommending the settlement.
Defendants deny any wrongdoing or liability, settling solely to avoid the burden and expense of further litigation.