Yahoo Investors Ask For Trial Before Aug. 1

June 11, 2008 10:05 a.m. EST

San Francisco, CA (AHN) - A lawsuit against Yahoo brought by investors are asking a Delaware court to bring the matter to trial prior to the Internet giant's Aug. 1 board vote. The lawsuit charges a Yahoo severence plan offered to employees would burden any buyer with billions of dollars of extra expenses.

Activist investor Carl Icahn has slammed Yahoo leaders, saying the severance plan would have added $2.4 billion to the cost of any bid. Microsoft recently abandoned its attempt to acquire the Internet company after Yahoo CEO and co-founder Jerry Yang rejected a $47.5 billion offer.

Icahn is expected to offer his own slate of candidates for the Yahoo board, when the Sunnyvale, Calif.-based company meets for its annual meeting.

In related news, Yahoo told its employees the severence plan was written to keep the program from being changed by Icahn, or other challengers.