Decision to Close Orange Plant Leads Shareholders to Sue Vans

Disgruntled shareholders have filed a civil lawsuit against Vans Inc. and its officers in connection with the company’s recent decision to close an aging shoe manufacturing plant and take at least a $35-million charge against earnings, the company said Friday.

The suit, which seeks unspecified damages, alleges that Vans’ ongoing corporate restructuring is part of a scheme to defraud shareholders.

Vans on May 31 said it will close its Orange manufacturing plant at the end of July and put nearly 1,000 employees out of work. The company linked the closing to dramatically increased consumer demand for shoes that Vans acquires from overseas producers.

Craig E. Gosselin, Vans vice president and general counsel, described the suit, filed in U.S. District Court in Santa Ana, as a “knee-jerk reaction to a major corporate restructuring. . . . We have consistently met all of our obligations under the securities laws, and we will continue to do so. We intend to defend ourselves vigorously.”

Shareholders who filed the suit were not available for comment. Vans said the shareholders acquired an unspecified amount of Vans common stock between June 27, 1994 and May 12.