In Other News, Yahoo Settles Shareholder Lawsuit on Severance Plans

As if Yahoo wasn’t doing enough today with the announced layoff of 1,500 people, it also just settled a shareholder lawsuit over controversial severance plans it adopted shortly after Microsoft’s unsolicited bid to buy the company. That plan plan gave all 13,800 Yahoo employees at the time cash and accelerated stock grants in the event of a takeover and a change in their jobs. The cost of the two plans, one for U.S. employees and one for overseas staff, was estimated by a consultant Yahoo hired to be up to $2.1 billion. It turned out it was likely to be far less than that, but the cost may have been a factor in Microsoft getting cold feet on its Yahoo bid.

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