Palm is close to settling at least one lawsuit related to HP’s acquisition of the company. Palm says it has entered into a memorandum of understanding to settle a lawsuit that challenged the $5.70 per share price as too low.
Palm yesterday filed additional proxy materials with the Securities and Exchange Commission (SEC) to disclose the settlement and to supplement the disclosures in a proxy statement filed on May 26.
Palm didn’t disclose terms of the settlement. However, the filing says the settlement “will not affect the amount of the merger consideration that Palm stockholders are entitled to receive in the merger.”
The suit, Steve Ubaney vs. Jonathan Rubinstein, et al, generally alleges that the individual defendants breached their fiduciary duty by failing to maximize stockholder value in negotiating and approving the merger agreement and that the proxy statement omits certain material information. The defendants denied the allegations.
Similar suits are pending. A special meeting of shareholders will be held June 25 for shareholders to vote on the HP deal.
In other Palm news, Precentral.net earlier this week reported that Rich Dellinger, who is credited for developing a notification system for the webOS software, left Palm to work for his previous employer, Apple.
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