Hypercom Ignoring Viable Takeover Bid, Suit Says

Law360, New York (October 5, 2010, 1:09 PM EDT) -- A shareholder in electronic payments processor Hypercom Corp. has filed a derivative class action asking a Delaware court to order the company to consider a takeover bid from Verifone Systems Inc., one of its larger competitors.

Hypercom's board of directors violated its fiduciary duty by rejecting two offers from Verifone, according to a complaint filed Friday in the Delaware Court of Chancery by shareholder Joel Gerber. The company has since undertaken several “defensive” measures, including litigation and the creation of a poison pill, to discourage any...
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