Yahoo may have to defend its response to Microsoft's takeover attempt in a trial that could sway the outcome of the internet pioneer's August showdown with investor activist Carl Icahn, an Associated Press report said.
The legal drama will unfold next month if a
The disgruntled shareholders are seeking to cancel an employee severance plan that Yahoo's board adopted shortly after Microsoft made its initial bid of €28.8 billion (US$44.6 billion), or €20 (US$31) per share.
In court papers, the shareholder attorneys argue that the legality of the severance plan should be determined in a trial before an August 1 election pitting Yahoo's current board against Icahn and eight other candidates nominated by the billionaire.
Yahoo had no immediate comment, but legal and corporate-governance experts expect the company to vigorously oppose the motion for a July trial date.