CYGNE SUED BY HOLDER ON FENN BUY
NEW YORK — Cygne Designs Inc. said Tuesday it has been hit with a shareholder lawsuit alleging that “false and misleading statements” were made when the company purchased Fenn Wright & Manson last year.
The suit, which also names as defendants some executives and directors and its independent accountants, seeks class action status and unspecified monetary damages.
Cygne purchased the closely held private-label maker of men’s and women’s sportswear in April 1994 for 2 million newly issued shares in a transaction valued at $44 million. The suit claims Cygne “failed to disclose on a timely basis adverse information about the company’s business and financial condition” at the time of the purchase.
Cygne, based here, said in a statement that it is reviewing the suit with it legal counsel and “will take appropriate actions.” — Fairchild News Service