Yahoo Lawsuit Wants Poison Pill Nullified
Shareholders filed suit against Yahoo, seeking the elimination of a severance plan the company adopted to keep it from being taken over by Microsoft.
Following the call by corporate raider Carl Icahn to Yahoo chairman Roy Bostock to eliminate the plan, where Yahoo staffers would be free to leave the company under certain conditions with a generous payout after a takeover, a lawsuit by Yahoo’s shareholders made a similar demand.
The litigants already have a case in the works against Yahoo, as the New York Times noted. Two Detroit pension plans that are already angry about the breakdown of Microsoft’s lucrative takeover bid for Yahoo called for the company to eliminate the poison pill: