Skechers USA has reportedly increased its offer to hedge funds and other institutional investors challenging the valuation of the company’s $9.4bn take-private acquisition by 3G Capital, as litigation surrounding the deal continues in Delaware, according to a report by Bloomberg.
The report cites unnamed people familiar with the matter as highlighting that the footwear company proposed in April to settle claims at $65 per share — $2 above the original acquisition price agreed with 3G Capital in September. The revised proposal represents an increase from a prior $64-per-share offer made during unsuccessful settlement discussions last year.
The dispute centres on a group of hedge funds and institutional investors pursuing an appraisal arbitrage strategy, in which investors acquire shares after a takeover announcement and seek a court determination that the transaction undervalued the company. Under Delaware law, successful claimants may also receive interest payments accrued during the litigation process.
The case is shaping up to be one of the largest appraisal actions in Delaware in recent years, with challengers collectively holding approximately $1.3bn worth of Skechers shares at the time proceedings began. The litigation remains at an early stage and no trial date has yet been scheduled.
Appraisal arbitrage activity had declined in Delaware following several court rulings that upheld deal prices or awarded investors less than the acquisition value. However, the strategy has regained traction more recently as hedge funds target large transactions they believe may involve conflicts of interest or flawed sale processes.
Investors contesting the Skechers deal have argued that founder Robert Greenberg and his son agreed to sell the company during a period of market disruption triggered by President Donald Trump’s tariff announcements in April 2025. Those measures weighed heavily on Skechers shares given the company’s manufacturing exposure to China and Vietnam.
Court filings from plaintiffs allege the Greenberg family, which controlled roughly 60% of the company’s voting power, approved the transaction without requiring a separate vote from minority shareholders. When the acquisition was announced in May 2025, Skechers and 3G Capital said the offer represented a 30% premium to the company’s 15-day volume-weighted average share price.
Settlement negotiations between Skechers and the investor group failed to produce an agreement last year, with plaintiffs reportedly seeking compensation above the company’s proposed terms.
Some investors may nevertheless choose to settle in order to avoid holding illiquid claims through a potentially lengthy legal process. Early resolutions can also reduce financial and litigation risk for companies facing large numbers of claimants.
Court filings indicate that at least one hedge fund, Connecticut-based Hudson Bay Capital Management, has already reached a settlement with Skechers. The terms were not disclosed. Delaware Chancellor Kathaleen McCormick approved the agreement last week, removing the firm from the case.
