A Maryland federal judge has given preliminary approval to a nearly $2.2 million settlement, bringing an end to a class action lawsuit that claimed Bowl America’s board of directors acted in bad faith during the company’s merger with Bowlero Corp. The settlement, which was submitted for approval last Tuesday, has been in the works for over three years since Bowlero first announced its acquisition of Bowl America.
U.S. District Judge Stephanie A. Gallagher’s order, issued Friday, sets a fairness hearing for October 31 to determine the final approval of the settlement. If approved, the settlement will resolve claims brought by Bowl America investors who argued that the $44 million acquisition undervalued their shares and failed to account for Bowl America’s real estate assets.
$2.2M Bowling Co Settlement approval : Allegations of an Unfair Deal
The lawsuit centers around Bowlero Corp.’s 2021 acquisition of Bowl America, which involved purchasing all of Bowl America’s outstanding stock at $8.53 per share, including a 60-cent-per-share special dividend paid at the merger’s closing. The plaintiffs, however, argued that Bowlero’s offer was “wholly inadequate,” claiming that it undervalued Bowl America’s assets, particularly its real estate holdings, which were worth more than $50 million before the COVID-19 pandemic.
