San Diego, Aug 16, 2011 (Shareholders Foundation) -- An investor in NYSE:MMI stocks filed a lawsuit in State Court against members of the board of directors in effort to block the proposed takeover of Motorola Mobility Holdings by Google Inc.
According to the complaint the plaintiff alleges that the defendants breached their fiduciary duties by agreeing to sell Motorola Mobility Holdings too cheaply to Google Inc.

On Monday, Aug. 15, 2011 Motorola Mobility Holdings, Inc. (NYSE: MMI) and Google Inc. (NASDAQ: GOOG) announced that they have entered into an agreement under which Google Inc. will acquire Motorola Mobility Holdings, Inc for $40.00 per share in cash, or a total of about $12.5 billion. Motorola Mobility Holdings said the offer represents a premium of 63% to the closing price of Motorola Mobility shares on Friday, August 12, 2011.

Following the takeover news share of Motorola Mobility Holdings Inc (Public, NYSE:MMI) jumped from slightly above $25 on Friday August 12 to as high as $38.67 on Monday.

However, the plaintiff claims that the offer is too low. In fact, at least one analyst set a price target for Motorola Mobility stock at $42.00 per share and shares of Motorola Mobility Holdings Inc traded as early as January 19, 2010 at $36.34, leaving certain MMI stockholders with only a meager premium.

Additionally the plaintiff alleges that buyout unfairly enriches Motorola Mobility Holdings board members, while preventing its shareholders from enjoying any upside from the company's expected rebound. In fact, Motorola Mobility Holdings financial performance has been increasing recently. Motorola Mobility Holdings Inc was able to increase its annual Total Revenue from $11.05billion in 2009 to $11.46billion in 2010 and lower its Net Loss from $1.34billion in 09 to $86million in 2010.