Class-action suit launched over HP’s takeover of Palm

They can move fast when it suits them, lawyers, and a Pennsylvania firm has already launched a class action lawsuit against the directors of Palm over its proposed acquisition by HP.

Under the terms of the merger agreement, Palm stockholders are to receive $5.70 in cash for each share of Palm common stock they own.

Some might say this isn’t bad, as shares were trading at just $4-odd last week. But law firm Howard G Smith’s clients think it should be a lot more.

“The Law Offices of Howard G Smith believes that the deal is suspicious because it appears from a review of the Company’s financial statements that the inherent value of the Company’s stock is greater than $5.70 per share,” says the firm.

“Because the share price was as high as $6.29 just this month prior to the announcement of the deal, because the share price has been as high as $13.58 just this year and also because it appears that the Company’s Board of Directors failed to shop the Company to other potential buyers to assure that its shareholders would receive the best price possible for their shares.”

Aggrieved shareholders can join in the fun by visiting the firm’s website, here. They’ve got until 12 May.