QUEENS, N.Y. (CN) – Shareholders say On2 Technologies sold out too cheaply to Google in a $107 million sale that favors “certain insider shareholders,” and that does not actually give On2 shareholders 60 cents worth of Google common stock for each On2 share, as promised.
On2 develops video compression and related technologies for multimedia playback over the Internet and wireless devices.
The class accuses On2 and its directors, and Google, of “… (v) falsely portraying the proposed transaction as one in which the On2 shareholders will receive Google stock in exchange for their shares; and (vi) attempting to extinguish shareholder derivative standing to evade liability for admitted accounting improprieties that resulted in the generation of false financial statements.”
Plaintiffs want the sale enjoined unless they get more money for their shares. They are represented in Queens County Court by Robert Rothman with Coughlin Stoia Geller of Melville, N.Y.