Benzinga | Jul 30, 2021 07:32AM EDT

L Brands Reports A Global Settlement Of All Shareholder Derivative Claims Alleging Workplace Misconduct

L Brands, Inc. (NYSE:LB) announced today the global settlement of all stockholder derivative claims alleging workplace misconduct at the company, including claims made in derivative stockholder litigations pending in Ohio and Delaware and in stockholder demands sent to the Board of Directors (the "Board") since February 2020. In the settlement, L Brands has agreed to a suite of corporate governance and management measures, including the maintenance of a Diversity, Equity and Inclusion ("DEI") Council, the strengthening of policies and procedures for reporting and investigating sexual harassment complaints and the hiring of a DEI consultant. These measures, which continue the governance and management reforms the Board has been implementing over the past year, will benefit L Brands stockholders and reflect L Brands' ongoing commitment to fostering a safe, equitable and inclusive workplace.



Following the planned August 2, 2021 spin-off of Victoria's Secret & Co., the settlement terms will apply to both Bath & Body Works, Inc. and Victoria's Secret & Co. Each company has committed to invest $45 million over at least five years to fund its governance policies.

The settlement was negotiated by a Special Committee of the Board, helmed by Board Chair Sarah Nash, that had been formed to investigate the stockholders' allegations. The settlement will mark the full and final resolution of the stockholders' claims of workplace misconduct and the conclusion of the Special Committee's work.

"This global resolution, with its commitment to industry-leading governance policies, is an overwhelmingly positive result for the Company and its stockholders," said Ms. Nash. "It further prepares both Bath & Body Works and Victoria's Secret for success as independent public companies with strong management teams and boards of directors committed to principles of diversity, equity and inclusion."

L Brands and Bath & Body Works CEO Andrew Meslow said, "As L Brands prepares to separate into two independent public companies, we are proud to implement these governance policies to ensure a workplace where all employees feel safe and supported and that their voices are heard."

The settlement will be filed in the United States District Court for the Southern District of Ohio in the case captioned Rudi v. Wexner, et al., Case No. 2:20-cv-3068, and is subject to court approval.