Abercrombie & Fitch settlement approved

New York -- A federal judge recommended approval of a revised settlement of a lawsuit that challenged the pay of former Abercrombie & Fitch CEO Michael Jeffries. The action comes three months after a different judge rejected a settlement that appeared to offer few benefits to the company and “broadly released shareholders' claims," Reuters reported.



The judge said the revised terms "confer a substantial benefit" on the retailer and its shareholders in that it better aligns pay with performance, tightens conflict of interest rules, and provides for a new chief ethics officer, according to the report.



The settlement resolves claims that Abercrombie should not have awarded Jeffries more than $140 million since 2007 and let him rack up "massive" travel expenses, even as the chain’s sales fell and its stock lagged behind its peers.



Jeffries, 70, stepped down as CEO of Abercrombie this past December. He served in the position since February 1992.