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A plaintiff’s lawyer representing shareholders of Yahoo! Inc. in a class action lawsuit against the company’s board of directors plans to add billions of dollars in damages to its complaint following Microsoft Corp.‘s recent decision to abandon a $47.5 billion proposed bid. “When we filed the lawsuit 2 1/2 months ago, we saw existing breaches and feared additional breaches of duty,” said Mark Lebovitch, a partner at New York’s Bernstein Litowitz Berger & Grossmann and co-lead counsel in the case. Police & Fire Retirement System of Detroit v. Yahoo! Inc., C.A. No. 561-CC (Del. Ch. Ct.). Microsoft’s withdrawal, he said, “is an unfortunate confirmation that our initial fears were well placed.” Lebovitch represents two pension funds, Police & Fire Retirement System of the City of Detroit and the General Retirement System of the City of Detroit, in a proposed class action filed Feb. 21 on behalf of thousands of Yahoo shareholders. The suit seeks injunctive relief against Yahoo, Chief Executive Jerry Yang and the company’s board members. “The Yahoo Board members have placed personal distaste for Microsoft ahead of shareholder welfare,” the suit states. Microsoft, which initially proposed a bid for Yahoo in February, raised its offer to $33 per share, but Yang reportedly would not accept less than $37 per share. Microsoft withdrew its offer this past weekend, and Yahoo’s shares plummeted more than 15 percent on Monday. On Tuesday, Yahoo’s shares recovered somewhat, up more than 5 percent to $25.77 per share. “A lot of shareholders lost very, very significant sums of money,” Lebovitch said. A lawyer for Yahoo, Garrett Waltzer, a partner in the Palo Alto, Calif., office of New York-based Skadden, Arps, Slate, Meagher & Flom, said: “We’re prepared to respond accordingly.” A lawyer for Yahoo’s board members, Robert Dell Angelo, a partner at Los Angeles-based Munger, Tolles & Olson, did not return a call for comment.

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