Lawsuit Overview
January 25, 2013 (Shareholders Foundation) -- An investor in shares of Dell Inc. (NASDAQ: DELL) filed a lawsuit in effort to stop a potential takeover of Dell Inc. The plaintiff alleges that Michael Dell and others are trying to take Dell Inc private via a cheap and unfair process. On Monday, January 14, 2013, rumors surfaced that Dell Inc is said to be in buyout discussions with private equity firms. Shares of Dell Inc. (NASDAQ: DELL) jumped from 10.92 to $12.74 per share on Monday and closed at $12.28 per share. Dell Inc. shares continued to increase on Tuesday to as high as $13.22 per share. However, the plaintiff says the takeover is unfair to NASDAQ: DELL stockholders. Indeed, given a potential takeover price of $13 to $14 is not in line with an analyst estimate and also is lower than recent trading prices. In fact, at least one analyst has set the high target price for NASDAQ:DELL shares at $16.00 per share and Dell Inc. shares traded in 2012 as high as $18.16 per share. Furthermore, Dell’s financial performance improved over the past recent years. In fact, Dell Inc. reported that its Total Revenue rose from over $52.9 billion for the 52 weeks period that ended on Jan. 29, 2010 to over $62.07 billion for the 52 weeks period that ended on Feb. 03, 2012 and that its Net Income over the respective time periods increased from over $2.63 billion to over $3.49 billion. Additionally, shares of Dell Inc. (NASDAQ: DELL) Grew from as low as $8.41 per share in February 2009 to as high as $18.16 per share in February 2012.