Palm in the Midst of a Class-Action Lawsuit
Apparently, not all good things can last. On the heels of the (honestly) great news that HP had purchased Palm, the house that created webOS, it looks like a law firm has set in motion the investigation of a possible class-action lawsuit against Palm for the deal. The law firm in question, Howard G. Smith, has said that they are acting on behalf of investors, due to the deal not leveraging the mos money possible.
As the story goes right now, the law firm is investigating the possibility of a class-action lawsuit filed against Palm because they were “short-changed,” after the purchase by HP. Their claim, that Palm may have broken its fiduciary duty by agreeing to the deal, stems from the fact that the deal was apparently struck with stocks at a low price of $5.70, which equaled the deal at $1.2 billion. Their discomfort comes from the fact that stocks were at $17.20 last year.
Obviously, Palm (and webOS with it) were in a very tough spot, so the purchase by HP was something that was obviously needed. However, if the investors know something we don’t, then this could very well turn into another problem. There’s no word on how close the law firm is to actually suing Palm, but we’ll obviously keep our ears to the ground on this one.
[via Ubergizmo]