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The law firm of Howard G Smith has today confirmed that it is in the midst of investigating the possibility of a class-action lawsuit being filed against Palm for potentially short-changing investors when it agreed to be purchased by HP. They claim that Palm may have broken its fiduciary duty by agreeing to the alleged low price of $5.70 per share (totaling $1.2 billion) when it was worth as much as $17.20 last year. It’s currently unclear how close the firm is to actually suing Palm or how successful such a case would be. What most people do know is that Palm was going through some pretty tough times before it was acquired, and might not have lived to see the future if something wasn’t done quick.

Filed in Cellphones. Read more about acquisition, HP, lawsuit, legal and palm.

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