A judge has approved the settlement of a class-action lawsuit over Playboy magazine founder Hugh Hefner's successful bid to take the company private.
In the settlement approved on Tuesday, shareholders of Playboy Enterprises Inc agreed to accept US$5.25 million ($6.38 million) in cash in return for dropping the lawsuit. After attorney fees and expenses, they'll receive about US$4m, or 17 cents per share.
Hefner proposed the buyout in 2010, offering US$5.50 a share for the roughly 30 per cent of Playboy's outstanding voting shares he didn't own.
Shareholders sued, saying the price was too low and that they weren't given enough information about the deal.
Hefner, backed by private investment firm Rizvi Traverse, later increased the bid to US$6.15 a share, an 18 per cent premium over the previous day's closing price.