Macy's has settled a proxy contest with activist investor Arkhouse Management by agreeing to add two of Arkhouse's nominees to its board of directors, following a -2.5% pre-market dip in its stock price. This move comes after a shareholder lawsuit was filed in Delaware, accusing Macy's of employing an improper takeover defense. The settlement, which was reached on Wednesday, effectively ends the proxy contest, allowing Macy's to continue with its deal talks. The newly appointed directors are independent and their addition to the board is effective immediately.