US-based designer and manufacturer of boxing- and fitness-related sporting goods Everlast Worldwide Inc. has entered into a settlement agreement with Hidary Group Acquisitions, LLC and Hidary Group Acquisitions, Inc, which provides for the dismissal, with prejudice, of Hidary’s lawsuit against Everlast, which sought to block Everlast’s pending merger agreement with Brands Holdings Limited. According to the terms of the settlement, among other things, Everlast has agreed to limit the discovery it may take from Hidary in connection with certain stockholder litigation, and Everlast agreed to publicly reaffirm its board’s commitment to comply with its fiduciary responsibilities, as set forth below.

Under the settlement agreement, the board of directors at Everlast remains free to consider unsolicited acquisition proposals. Additionally, as Everlast has previously disclosed, there is no agreement between Everlast and Hidary that would prohibit Hidary from commencing a non-coercive tender offer for Everlast’s shares.