Beleaguered Yahoo faces legal action over a severance plan that investors suggest may have derailed Microsoft’s $47.5 billion.
Two Detroit pension funds and billionaire Carl Icahn are pushing for a quick trial that would be over before the company’s August 1st annual meeting, where Icahn is looking to overthrow the board.
Yahoo, the plaintiffs in the case, suggest that, should Icahn’s proxy fight succeed, shareholders would be required to pay as much as $2.4 billion in potential severance payments.
"If they continue with this line, I believe they may be personally liable," Icahn told the told the New York Financial Writers’ Association.
"They put in a severance plan that is just a complete and total travesty. These board members get $10,000 a week to go to a few boondoggle meetings."
The case, as they say, continues.