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Cadbury board sued by shareholder

Published on 2 Oct 2009 under category: legal

Cadbury's board and chief executive are being sued by one of the company's shareholders.

Commercial litigation against the British firm has been filed in the US, with it claimed that investors in the business will lose out if it does not agree terms on a takeover deal.

This relates to discussion on a potential £10.2 billion agreement with US company Kraft Foods.

The lawsuit stated: "Cadbury shareholders stand to lose out massively if the Cadbury board continues to refuse to negotiate a transaction with Kraft."

It added that the British firm's executives would "lose their positions of power" should the deal go through.

Cadbury refused to comment on the news, stating that it had not yet received any legal papers in relation to this action.

In other commercial litigation news, Michael Jackson's estate is reported to be suing the Heal the World Foundation, saying that the charity infringes on trademarks held by the late singer.

If you require advice on Commercial Litigation please call us on +44 (0)20 7831 0101 and ask for Andrew Pena.