Motorola Mobility shareholder John W. Keating has filed a lawsuit accusing Motorola’s CEO Sanjay Jha, Motorola’s board of directors, and members of Google’s board of directors for violating their fiduciary duty by agreeing to a sale price of $12.5 billion. The price, valued at $40 per share, represents a 63% increase over the closing price of Motorola’s stock on August 12. Keating says that Motorola’s executives did not fetch the best possible price for the company, and that the deal undervalues Motorola. “The offered consideration does not compensate shareholders for the company’s intrinsic value and stand-alone alternatives going forward, nor does it compensate shareholders for the company’s value as a strategic asset for Google,” said Keating in the lawsuit. He is seeking class-action status for the case, and wants the agreement deemed “unenforceable” in order to block the sale.
Shareholder Sues Motorola Over Sale Price to Google
Motorola Mobility shareholder John W. Keating has filed a lawsuit accusing Motorola’s CEO Sanjay Jha, Motorola’s board of directors, and members of Google’s board of directors for violating their fiduciary duty by agreeing to a sale price of $12.5 billion. The price, valued at $40 per share, represents a 63% increase over the closing price of Motorola’s stock on August 12. Keating says that Motorola’s executives did not fetch the best possible price for the company, and that the deal undervalues Motorola. “The offered consideration does not compensate shareholders for the company’s intrinsic value and stand-alone alternatives going forward, nor does it compensate shareholders for the company’s value as a strategic asset for Google,” said Keating in the lawsuit. He is seeking class-action status for the case, and wants the agreement deemed “unenforceable” in order to block the sale.