J. Crew Group Inc.’s $10 million settlement of an investor lawsuit over the proposed takeover by private-equity firms TPG Capital and Leonard Green & Partners LP fell apart, a lawyer for the shareholders said.
J. Crew officials undermined a deal in which the clothier agreed to extend the period to solicit competing offers to the $3 billion buyout bid, Stuart Grant, a lawyer for J. Crew shareholders objecting to the buyout, claimed in a court filing. The accord included a $10 million payment to plaintiffs.