According to a Thursday, May 6, 2010 report, following the $1.2 billion purchase of Palm by HP, a shareholder is taking legal action against executives at the ex- company. The applicant, Steve Ubaney, in his complaint asserts that,“Palm directors breached their fiduciary duties by making a deal that “unfairly favors” holders of preferred Series B shares.”

In the contract, HP will reimburse ordinary stockholders $5.70 a share in money. But the chief shareholder in Palm, Elevation associates, will get $8.50 for each of its favored shares and deserves, for a total of $485 million. Ubaney says,
“Elevation shouldn’t get additional money for its preferred shares; according to an agreement it signed with Palm in 2007, which is said to only entitle Elevation to recover the same amount as common stockholders in a merger.”

Ubaney look for a court order jamming the deal and indefinite compensation. He is also in search to symbolize other depositors in comparable circumstances.

Just over a week previously, a parallel, though a class-action claim was categorized against Palm for potentially short-changing financier by not shopping itself around for a superior stockpile value.

[Via Electronista]