An investor in Hypercom Corporation (NYSE:HYC) filed a lawsuit in State Court alleging breaches of fiduciary duties by board of directors in connection with the proposal by VeriFone Systems to take over Hypercom Corporation.
According to the complaint the plaintiff alleges that Hypercom's board of directors violated its fiduciary duty by rejecting two takeover offers from Verifone VeriFone Systems.

On Wednesday, September 29, 2010, after the market closed VeriFone Systems, Inc. (NYSE: PAY) announced that they have submitted a letter to Hypercom Corp.'s (NYSE: HYC) Board of directors, detailing a proposal to acquire all of the outstanding shares of Hypercom for $5.25 per share in cash. VeriFone Systems said they approached Hypercom Corp before and were disappointed by the Directors of Hypercom Corporation failure to engage in a meaningful discussion in their September 24 proposal in which VeriFone Systems, Inc. proposed to acquire all of the outstanding shares of Hypercom Corporation at a 0.21x exchange ratio. While the old share exchange offer represented a premium of 52% over the closing price of Hypercom Corporation shares on September 23 and 69% over the average share price for the thirty trading days prior to VeriFone Systems proposal, the new $5.25 per share cash offer would deliver to Hypercom Corporation shareholders a cash premium of 37% over Hypercom Corporation closing share price on September 23, 2010 and 52% over your 30-day trailing average closing price as of that date. Shares of Hypercom Corporation (NYSE: HYC) traded on Wednesday as high as $4.35 per share, before increasing above the current offer to $6.15 per share in after hours trading. HYC shares continued to increase to recently $6.33 per share. But the plaintiff asked the court to order Hypercom Corp at least to consider a takeover bid from Verifone Systems Inc.