By Svea Herbst-Bayliss

(Reuters) – Donerail Group and Turtle Beach (NASDAQ) Corp are close to a settlement, according to people who were familiar with the matter. The agreement will allow Turtle Beach representatives on its board of directors.

Donerail has 7.4% ownership beneficial to Turtle Beach’s outstanding shares. The company has been criticizing Turtle Beach for its gaming controllers and headsets manufacturing mistakes and pushing it to be sold. Turtle Beach claims it is trying to sell the company at an appealing price.

Sources said Turtle Beach agreed to include three Donerail nominees on its board. This will increase the number of directors from six to nine. At the next monthly meeting, one director will be retiring.

According to sources, this is after Turtle Beach’s major shareholders had informed Donerail that they would support Donerail’s nominees for board directors at the June meeting. Donerail, which stated it intended to replace Juergen Sternk’s entire board with its own nominees, made this announcement in March. Turtle Beach will be spared from the challenge of the board.

According to sources, Turtle Beach has established a committee to review the strategic plan for the sale of the company. It will include four members including Donerail directors. According to sources, Donerail’s managing director Will Wyatt will serve as an advisor for that committee.

Turtle Beach will not be sold within 120 calendar days. A Donerail principal, and another Donerail director, would become members of the board. The hedge fund would then have complete control.

According to sources, the deal could be finalized by Monday.

Turtle Beach has declined to comment on its market value, valued at $275 million.

The company’s stock has declined 42% during the past 52 weeks, while the decline was 3.4% in the.

Turtle Beach stated earlier in this month that it had engaged on three occasions with potential buyers over the past five years. Sources claim that the company received new interest in acquisitions and is currently in talks with two potential buyers. According to one source, the company anticipates reaching out to over 50 parties in the course of the sale process.