A Yahoo! Inc. investor agreed to drop a lawsuit in which the search-engine company was accused of overpaying for its repurchase of 40 million shares from director and activist Daniel Loeb.
Shareholder Lawrence Zucker sued Loeb; his firm, Third Point LLC; Sunnyvale, California-based Yahoo; and its directors in New York State Supreme Court in July 2013, saying that the company paid $50 million more than it should have for the shares based on their market price the day before the sale was completed.
Zucker said in a June 13 court filing that “it is in the best interest of Yahoo and its shareholders” to drop the suit. The shareholder said neither he nor his lawyers have received payment in connection with the action.
The company said July 22 that Loeb was leaving the board and selling $1.16 billion of his stake back to the company, capping an almost two-year effort to revamp the Web portal.
Nicholas I. Porritt, an attorney with Levi & Korsinsky LLP representing Zucker, didn’t immediately reply to a voice-mail message seeking comment on the filing.
The case is Zucker v. Loeb, 652678/2013, New York State Supreme Court, New York County (Manhattan).