In February ,City of Detroit’s Police and Fire Retirement System and General Retirement System, has filed a lawsuit to prevent the Yahoo board from taking any unacceptable actions that prevents the success of the Microsoft takeover proposal.

In the original lawsuit ,Shareholders were suing only Yahoo and its board of directors. Today ,in a recent development ,the shareholders decide to sue the board of directors and David Filo (not a board member and company co-founder) as defendants. Yahoo shareholders are accusing Internet giant board for their irresponsible actions that lead to the Microsoft withdrawal of the $47.5 billion takeover offer.

Lawyers of the shareholders are saying that the board and Filo have been hiding documents from the shareholders including the employees severance after the takeover , Yahoo future plans prior to the Microsoft offer and several notes taken by Microsoft and Yahoo chairmans during the takeover negotiation.

Also the lawyers of the shareholders issued a complaint to the Delaware Chancery Court to disclose all the suit documents to the public, the matter that Yahoo rejects and prefers that some of the documents remain confidential.

The battle is going from bad to worse…………to be continued

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Tags: Yahoo, yahoo lawsuit, yahoo shareholders lawsuit