Parlux settles dispute with shareholder, names interim CEO, replaces directors

By Lisa Kerner

Charlotte, N.C., Feb. 7 - Parlux Fragrances, Inc. said it reached an amicable resolution with Glenn Nussdorf, a 12% shareholder of the company, over replacing its board of directors.

As result, Nussdorf has terminated his solicitation of consents from Parlux stockholders to replace company directors. Parlux has dismissed with prejudice its lawsuit against Nussdorf, his nominees and certain Nussdorf-controlled companies, according to a schedule 13D filing with the Securities and Exchange Commission.

The settlement calls for the immediate resignation of Ilia Lekach from the Parlux board and resulted in the voluntary resignation of Jaya Kader Zebede as well as Frank A. Buttacavoli, who will continue as Parlux's executive vice president, chief operating officer and chief financial officer.

In addition, Nussdorf's nominees, Neil Katz, Anthony D'Agostino and Robert Mitzman were immediately appointed to the board and Neil Katz was named interim chief executive officer of Parlux, under the settlement terms.

Nussdorf and his affiliates have agreed not to make any proposal to acquire Parlux for two years, unless it is to acquire all shares at a value of not less than $11 per share.

"My consent solicitation was about performance at Parlux, and the value of the shares which I and every other Parlux stockholder own," Nussdorf said in a news release included in the SEC filing.

"It was never about me. Our settlement agreement demonstrates the commitment of the Parlux Board to addressing stockholder interests in a positive way."

Parlux, based in Fort Lauderdale, Fla., manufactures and distributes licensed fragrances, watches, cosmetics, sunglasses, handbags and other small leather accessories. Its stock closed at $6.99 Wednesday.

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