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Wayport Founder Sues Company & Board

WILMINGTON, Del. (CN) - Wayport Inc. insiders bought hundreds of thousands of shares on the cheap by withholding information that Cisco wanted to buy 117 Wayport patents, then they sold the company to AT&T for $328 million, investors say in Chancery Court. One plaintiff, Brett Stewart, says he founded Wayport and owned most of its patents when Wayport insiders persuaded him to sell a huge bloc of shares for $3 apiece.

Wayport specializes in wi-fi technologies. Stewart says he invented most of the company's 1,595 products on which its has patents or patent claims. He stepped down as CEO in 2000. He says Wayport insiders withheld Cisco's offer when they offered him $3 a share.

Plaintiffs are represented by Bruce Jameson with Prickett, Jones & Elliott.

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