Applebee's settles lawsuit against sale

Monday, October 15, 2007

OVERLAND PARK, Kan. -- Applebee's International Inc. has agreed to settle a class-action lawsuit filed by a union challenging the proposed $1.9 billion sale of the restaurant operator to IHOP Corp.

The casual-dining chain won't pay any money in the settlement but has agreed to provide its shareholders with additional information about the sale.

The New Jersey Building Laborers Pension and Annuity Funds filed the suit ten days after the deal with IHOP was announced. The union alleged the transaction robbed Applebee's shareholders of financial benefits they might receive if Applebee's stayed independent and sold off its remaining company-owned locations to franchisees.

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