A class action lawsuit has been filed against Alltel alleging preferential treatment was provided to certain Alltel insiders and directors in connection with their efforts to complete the sale of Alltel to TPG Capital, a subsidiary of Goldman Sachs, in a transaction valued at approximately $27.5 billion. The complaint alleges Alltel and its directors breached their fiduciary duties by placing their own interests ahead of the company's public shareholders by agreeing to a merger, which offers a meager premium to shareholders, but will enrich the directors significantly upon consummation of the change of control transaction.
The class action was filed in Pulaski County Circuit Court in Arkansas(Case No. CV 2007 006406) on behalf of holders of Alltel Corporation (NYSE:AT) Common Stock.
