Playboy Enterprises Inc. has agreed to pay $5.25 million to settle investors’ lawsuits alleging the media company’s founder, Hugh M. Hefner, shortchanged shareholders in a going-private buyout.
The accord resolves four suits over the 2011 deal, in which Hefner backed a partnership’s acquisition of all Playboy stock he didn’t already own for $6.15 a share, according to Delaware Chancery Court filings. Hefner and Playboy officials denied they harmed investors as part of the transaction.
“The defendants are entering into the stipulation solely because the settlement would eliminate the burden, expense and uncertainties inherent in further litigation,” company officials said in Tuesday’s filing.
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