Earlier this week, Verizon reached a deal to buy out Vodafone’s 45 percent stake in Verizon Wireless for a whopping $130 billion, but now it looks like the company’s shareholders aren’t too happy with the decision. One shareholder in particular, Natalie Gordon, is suing Verizon in a New York State court for paying too much, arguing that the company is being “shortchanged,” and citing Wall Street analysts as well as Moody’s decision to downgrade the carrier’s credit, Reuters reports.
Gordon’s lawsuit is currently seeking class action status in the hope that other shareholder’s will join in, and targets Verizon Chief Executive Lowell McAdam and a dozen other directors as defendants. The lawsuit would force Verizon to revoke and then renegotiate the deal. In an official response, Verizon executive VP and general counsel Randal Milch called the demands “entirely without merit.”
Verizon and Vodafone’s current deal is the third biggest in corporate history, after the carrier’s initial offer of $100 billion was rejected. To fund the buyout, Verizon partnered with JPMorgan Chase, Morgan Stanley, Barclays and Bank of America/Merrill Lynch, and the $130 billion will be paid with a mix of cash and stock.