OVERLAND PARK Kan. Applebee’s International Inc. has agreed to settle a class-action lawsuit by a New Jersey construction worker union’s pension fund, which alleged that the pending $2.3 billion sale of the company to IHOP Corp. would keep Applebee’s shareholders from benefiting from sales of restaurants to franchisees.
Julia Stewart, CEO of IHOP, had indicated that financiers of the deal would be paid in part with proceeds from the sales of most of the 508 corporate-owned Applebee's to franchisees, for about $950 million.
Applebee's, which is based here, reportedly will not pay any money in the settlement but rather will provide its shareholders with additional information about the merger.