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A Palm investor is suing its board of directors, claiming that its upcoming acquisition by Hewlett Packard would cheat shareholders.
According to Business Week, investor Steve Ubaney’s lawsuit alleges that the board breached client trust by approving a deal that unfairly favours holders of preferred Series B shares.
“The proposed transaction is the product of a flawed sales process and is being consummated at an unfair price,” read Ubaney’s complaint, which continued to allege that as a result of breach of fiduciary duty, common shareholders “will not receive their fair portion of the value of Palm’s assets and will be prevented from benefitting from a value-maximizing transaction.”
