Skechers Founders Face Lawsuit Over Buyout Deal
Shareholders allege executives manipulated financial projections to undervalue the company during its 2025 take-private merger.
Updated on Oct. 22, 2026 in Public Companies
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A class action lawsuit filed in the US District Court for the Central District of California accuses Skechers founders of manipulating internal financial projections. The suit alleges these actions artificially lowered the company's value to benefit executives during a $9.4 billion buyout by 3G Capital Partners.
Why it matters
The complaint suggests the founding family prioritized personal gain and executive retention over the interests of public shareholders. By allegedly revising projections downward before the merger, the founders may have made a lower buyout price appear more favorable to investors.
Public shareholders received $63 per share in the $9.4 billion deal that closed on September 12, 2025. Founders collected over $1 billion in upfront cash, with a nominal total value of $86 per share through additional equity units.
The players
3G Capital Partners
This private equity firm led the $9.4 billion take-private acquisition of Skechers in 2025.
Greenhill & Co.
This financial firm is named as a defendant for its role in the valuation model used during the buyout negotiations.
The details
The lawsuit claims that senior officers lowered financial projections three times in late April 2025 to facilitate the deal with 3G Capital Partners. It also names Greenhill & Co. as a defendant, citing their role in the valuation model used to approve the merger.
Timeline
Founders allegedly engaged 3G Capital on an exclusive basis in December 2024.
Internal financial projections were reportedly revised downward between April 23 and April 27, 2025.
Skechers withdrew its 2025 financial guidance on April 24, 2025.
The take-private acquisition deal closed on September 12, 2025.
The class action lawsuit was filed on October 21, 2026.
Market Landscape
This litigation highlights the increasing scrutiny surrounding take-private transactions where founders retain equity in the new private entity. It mirrors broader industry trends where shareholders challenge the valuation models used by outside advisors during high-stakes buyouts.
While the deal is closed and the company is private, this lawsuit may impact how investors evaluate future take-private offers from executive teams. Current or former shareholders should monitor court filings to determine if there are potential paths for recovery or compensation.
The takeaway
This case serves as a reminder for investors to closely scrutinize financial guidance shifts that occur immediately prior to acquisition announcements. Shareholders should remain vigilant when evaluating buyout offers that provide substantially different compensation structures for founders compared to public investors.
Further reading
For more information on corporate governance, visit the Public Companies section.
Source note: This article includes information reported by InvestmentNews.
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