Judge Unseals Yahoo Shareholder Suit: Severance Poison Pill Key To Complaint

While things have been pretty quiet on the Microsoft (NSDQ: MSFT) and Yahoo (NSDQ: YHOO) front (knock on wood: this looks to be a busy week), here’s an interesting note on the legal side of things: According to Yahoo’s own internal documents, reports AP, the expanded severance plan it announced in February would have cost Microsoft an extra $462 million – $2.1 billion over its initial $44.1 billion offer. The document was unearthed as part of a shareholder lawsuit which, in part, alleges that Microsoft could’ve offered more for the company had it not been for the severance plan. The full document can be found here (.pdf) (via TechTraderDaily). The internal Yahoo emails going over the severance math start on page 49 of the filing.

Update: The judge in this case also sent out a letter (.pdf) explaining the decision to open the filing, and it specifically addresses the the severance question: “Defendants argue that such excerpts, taken out of context, will prejudice Yahoo! in its upcoming proxy contest because such partial disclosure will create an incomplete record of the circumstances surrounding the adoption of the Yahoo! severance plans. Though I am cognizant of defendants