Shareholders Slap 3Com with Class Action Lawsuit

Paul Lilly

3Com's board of directors and the company's shareholders appear to be at odds over a proposed $2.7 billion merger agreement with HP that was announced last week. Displeased with the potential merger, the shareholders have filed a class action lawsuit in hopes of preventing the deal.

The complaint names the entire company's board of directors and accuses the defendants of attempting to deceive 3Com shareholders by agreeing to a deal that undermines the true value of their investment in the company, TechCrunch reports.

Under terms of the agreement, HP would pay stockholders of 3Com $7.90 per share, but the bankruptcy lawyer who filed the case on behalf of the plaintiffs argues that 3Com's directors should have insisted on a higher price.

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