Yahoo Shareholders Facing an Early Trial of This Court’s Patience
Yahoo (YHOO) caught a lucky break yesterday when a Delaware Chancery Court judge denied a request by company shareholders to expedite a trial on whether to invalidate Yahoo’s controversial employee severance plans.
The plaintiffs, who claim the severance plan makes any takeover of the company prohibitively expensive, had requested a trial before Yahoo’s annual shareholders meeting on Aug. 1. They argued that the plan, and Yahoo’s recently announced advertising deal with Google (GOOG), might unfairly bias Yahoo shareholders against efforts to replace the company’s board.
But the judge, who complained of the “media maelstrom” shareholders have created around the issue, didn’t buy it. And rather than expediting the case, he said he planned to set a “prompt” schedule for hearing Yahoo’s motion to dismiss it.
As I said, lucky break.
Photo of Judge Wapner from “The People’s Court.”