Lovesac Investors Get Final Court Approval for Accounting Reform

The Lovesac Co. directors and officers earned a federal judge’s final blessing for a settlement with shareholders to implement internal corporate reforms related to accounting allegations.

Judge Victor A. Bolden approved the shareholder derivative settlement Thursday in the US District Court for the District of Connecticut, dismissing the lawsuit with finality and without an admission of wrongdoing by the current and former executives and board members. The lawsuit alleged top brass were responsible for accounting improprieties and purported misrepresentations, particularly about the furniture brand’s shipping costs—an issue which also drew Securities and Exchange Commission scrutiny.

• The dozen reforms ...