February 27, 2008

Yahoo Lawsuits Hit Seven

Duncan Riley

9 comments »

The number of shareholder lawsuits targeting Yahoo over its rejection of Microsoft’s takeover offer now stands at seven.

According to Reuters, four of the lawsuits were filed in the California Superior Court and three were filed in the Delaware Chancery Court.

Yahoo said in a statement to the SEC that they “do not believe, based on current knowledge, that any of the foregoing legal proceedings or claims are likely to have a material adverse effect on our financial position.”

Yahoo is obviously confident of a positive outcome, however seven separate lawsuits would indicate that others may disagree.

See our previous coverage of Yahoo lawsuits here and here.

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Yahoo facing 7 lawsuits (so far) over Microsoft bid « Dan’s Tech-n-Stuff Weblog

March 7th, 2008 at 8:58 pm

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Pandrogas

February 27th, 2008 at 4:08 pm

Concerned parties could have of course made as much of a hubub about the deal as possible, wait for the inevitable shoot through the roof of the stock, then sold and bought Microsoft’s lowered stock amounts… Seems like it might have been a better solution for a longer term payout and they would have made some cash in the interrim.

Not 100% sure why suing a public company because they did something different than what you wanted because your very small share of stock belies that you have very little voice in the running of a larger company.

But so the world turns.
John Doe

February 27th, 2008 at 4:13 pm

Thank you Yahoo, our new hires (or your new losses) are working out great over here.
bs

February 27th, 2008 at 4:24 pm

@1 you obviouslyt dont understand that the board has a fidiciary duty for the stockholders to make a profit for them.
Jon

February 27th, 2008 at 4:42 pm

If they aren’t happy with Yahoo, then they should just sell their shares… I don’t understand how a lawsuit will do much of anything, any settlement (if there is one) just ends up being paid with lower share values.

Jon
http://woodmarvels.com - Create Unique Memories
Pandrogas

February 27th, 2008 at 5:11 pm

@3: I do, but a minor stockholder would have more power by removing their investment then by suing the company just because. Who’s to say that Yahoo doesn’t pull out some kind of ace from out of nowhere (it’s a long shot, but hey, you never know). If every company that turned down an impromptu offer from another company got sued, then companies would stop going public.

Anyone know who are the people / organizations suing Yahoo?
Ric

February 27th, 2008 at 6:10 pm

@3 You obviously don’t understand that the board is protected by the business judgment rule, and these lawsuits are a waste of paper because they won’t get anywhere.
George

February 27th, 2008 at 7:47 pm

@2 if your yahoo hires made your website yahoo should be glad they got rid of them.
Fabian Schonholz

February 28th, 2008 at 11:37 am

I think the best thing an unhappy share-holder can do is liquidate. The only caveat is where there is gross negligence in running the business. But that is a different story all together.