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COURT APPROVES L.A. GEAR SETTLEMENT AGREEMENTS WITH RESPECT TO THREE CONSOLIDATED SHAREHOLDER CLASS ACTION LAWSUITS

 COURT APPROVES L.A. GEAR SETTLEMENT AGREEMENTS WITH RESPECT
 TO THREE CONSOLIDATED SHAREHOLDER CLASS ACTION LAWSUITS
 LOS ANGELES, Calif., Sept. 4 /PRNewswire/ -- L.A. Gear, Inc. (NYSE: LA) today announced that the United States District Court for the Central District of California approved the Company's Settlement Agreements with respect to three separate consolidated shareholder securities class action lawsuits against the Company.
 In July, the Company announced that it had agreed to settle the class action lawsuits. The class actions were brought in 1990 and 1991 on behalf of classes of persons who purchased L.A. Gear common stock during certain periods and allege, among other things, violations of U.S. securities laws by the Company and certain of its present and former officers and directors. None of the individual defendants in such lawsuits are parties to the Settlement Agreements.
 Under the principal terms of the Settlement Agreements, the Company contributed $5.5 million in cash and 1.1 million shares of L.A. Gear common stock into three separate settlement funds established for the benefit of the plaintiff classes. The Settlement Agreements further provided that if the plaintiffs did not settle with the other class action defendants by the time of the settlement hearing, then the Company would be required to contribute additional shares to the settlement funds. No such settlements were reached with the other class action defendants. Accordingly, L.A. Gear will contribute 300,000 additional shares of L.A. Gear common stock to the settlement funds. The total 1.4 million shares contributed to the settlement funds is subject to adjustment determined by formulas based on the average closing price on the New York Stock Exchange of L.A. Gear common stock during the ten trading days prior to October 5, 1992.
 The Company has the right to recover on a dollar-for-dollar basis up to $3.6 million (less attorney's fees) of any settlements with, or judgements against, the individual non-settling defendants in the class action lawsuits and the two related shareholder derivative lawsuits.
 L.A. Gear and plaintiffs' counsel will jointly prosecute the two pending related shareholder derivative actions in order to recover damages on behalf of the Company from certain former and present officers and directors. The Company is continuing to investigate claims it may have against others arising from the various acts which are the subject of the class actions.
 The settlements do not constitute an admission by L.A. Gear that the allegations against the Company in the class actions have any merit.
 The contribution of the additional 300,000 shares of L.A. Gear common stock will be recorded by the Company as a pre-tax charge of $3.6 million to earnings in the Company's fiscal third quarter ending August 31, 1992. Such issuance will also result in a $3.6 million addition to the Company's equity.
 L.A. Gear, Inc. is a leading designer, developer and marketer of a broad range of quality athletic and casual/lifestyle footwear.
 -0- 9/4/92
 /CONTACT: Michael Sitrick, or Jeffrey Lloyd of Sitrick and Company, 310-788-2850, for L.A. Gear/
 (LA) CO: L.A. Gear, Inc. ST: California IN: TEX SU:


AL -- LA018 -- 7015 09/04/92 15:02 EDT
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Publication:PR Newswire
Date:Sep 4, 1992
Words:536
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