ACS shareholders bring multiple lawsuits to block proposed buyout

by PegNews wire

DALLAS — Dallas-based Affiliated Computer Services Inc. today said that plaintiffs who brought a derivative suit against the company related to its option-backdating issues have added claims against its proposed $6 billion buyout.

The second amended petition alleges that the proposal attempts to "extinguish the derivative claims related to stock option practices by eliminating the standing of the plaintiff shareholders to pursue those claims."

The petition also claims and that company Chairman and founder Darwin Deason and Cerberus Capital Management L.P. "misappropriated" ACS assets and information to facilitate preparation of the proposal, according to a Securities and Exchange Commission filing.

The suit was originally filed in April of last year in the District Court of Dallas County and amended Wednesday.

Two other shareholder lawsuits were filed this week in Delaware Court of Chancery attempting to block the planned $59.25-a-share buyout, stating that ACS' board did not consider other buyers. Both suits are seeking an order to block the buyout, and are seeking to represent all ACS shareholders as class action suits

ACS said it doesn't believe the claims in the Delaware suits, or the claims related to the proposal in the Texas suit have merit and that it intends to vigorously defend against them.

Shares of the Dallas technology outsourcing company closed Wednesday at $59.53 each.

Sources: Marketwatch, ACS