Cisco Execs Face Derivative Suit Over $5.7B Buyback

Law360, New York (April 21, 2011, 2:54 PM EDT) -- A Cisco Systems Inc. shareholder filed a derivative suit Wednesday in California claiming the company's top executives and board of directors breached their fiduciary duties by ordering Cisco to buy back more than $5.7 billion in company stock they knew was significantly overpriced.

The complaint says Cisco's top executives and directors touted the company's growth potential and financial growth even as they were forced to slash prices in order to keep up with stiff competition, causing a steep hit to its profits. When the truth came...
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