Gateway Sued For Rejecting Allegedly Profitable Deal

Law360, New York (November 6, 2006, 12:00 AM EST) -- Gateway Inc.’s board of directors is facing a shareholder derivative lawsuit for rejecting a $450 million offer for the company’s retail operations, the computer maker said Friday in its quarterly report with the Securities and Exchange Commission.

In the complaint, filed in California Superior Court in Orange County, the shareholders accused the Gateway executives of breaching their fiduciary duty. They are seeking unspecified damages and declaratory relief.

Lap Shun (John) Hui, a major Gateway shareholder who sold his online computer retailer eMachines to the Irvine, Calif.-based...
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