Lotus, Novell Sued Over Merger Plan: Two...
From Times Staff and Wire Service Reports
Lotus, Novell Sued Over Merger Plan: Two stockholders have gone to court to block the proposed $1.4-billion merger of software giants Lotus Development Corp. and Novell Inc., the companies said. The class-action lawsuit in Delaware Chancery Court seeks an injunction against the proposed merger, which sent shares of both companies tumbling after it was announced last week. The suit, filed by Novell shareholders Stephen Maskaleris and Herbert Podell, contends that Novell and its directors breached their fiduciary duties to shareholders in agreeing to merge with Lotus. Novell said it and Lotus believe that the suit is without merit and intend to defend against it vigorously.
