Yahoo shareholders sue after Microsoft deal is dropped
Two public pension funds from the city of Detroit plan to expand a lawsuit against Yahoo CEO Jerry Yang and other members of the board of directors into a class action.
The suit charges them for not acting in the best interest of shareholders by rejecting Microsoft’s offer of $33 per share bid.
After Microsoft’s withdrawal over the weekend, Yahoo share prices plummeted by 15 per cent to US$24.37, after dropping to as low as $22.97 earlier in the day. When Microsoft first announced their $44.6 billion acquisition bid on February 1, Yahoo shares jumped to $29.83 from $19.18 before the offer.
The class members allege this action constitute a breach of fiduciary duty.
Law firms Bernstein Litowitz Berger & Grossmann LLP and Bouchard Margules & Friedlander, P.A. who are representing the pension funds said they will seek damages for the loss of shareholder value caused by the Yahoo management over the aborted bid.
While Yahoo appeared to have tried drumming up several other alternatives like the recent Google collaboration, lawyers for the class members believe that such attempts reflect Yahoo’s reluctance to chip out a mutually agreeable deal with Microsoft.
Related posts:
Sphere: Related Content
Leave a Reply