On2 Technologies, Inc. Board of Directors Hit By Shareholder Lawsuit

Angry investors say On2 Technologies awash out too cheaply to Google in a $107 actor auction that favors "certain cabal shareholders". A On2 broker has filed a proposed balance chic action accusation in Delaware Chancery Court on account of accepted investors of On2 Technologies, Inc. (Public, AMEX:ONT), who purchased the shares afore August 5, 2009, over declared breaches of fiduciary assignment and added violations of accompaniment law in affiliation with an declared arbitrary takeover.

Those who are accepted investors in shares of On2 Technologies, Inc. (AMEX:ONT), and purchased the shares afore August 5, 2009, and / or accept added advice apropos to the investigation, should acquaintance the Shareholders Foundation, Inc. at Email: mail(at)shareholdersfoundation.com or alarm us at: +1 (858) 779 - 1554. According to the complaint the plaintiff alleges breaches of fiduciary assignment by the Board of Directors of On2 Technologies, Inc. (AMEX:ONT) arising out of their attack to advertise On2 Technologies to Google, Inc. The plaintiff alleges that "defendants rushed to advertise the proposed transaction at $0.60 per allotment on August 5th advanced of the absolute balance after-effects appear the next day, thereby agreement a cap on the company's banal price". On2 Technologies, Inc. (NYSE Amex: ONT) and Google Inc. (NASDAQ: GOOG) appear on Wednesday, August 05, 2009, that they accept entered into a absolute acceding beneath which Google will access On2 Technologies, Inc. On2 Technologies appear that anniversary outstanding allotment of On2 accepted banal will be adapted into $0.60 account of Google chic A accepted banal in a stock-for-stock transaction and that the transaction is admired at about $106.5 million. Google reportedly beneath to animadversion on the lawsuit. The plaintiff is affronted about assorted provisions, including a "no shop" article and a $2 actor abortion fee if On2's axle accepts a above accord to ensure that no aggressive offers emerge. A antecedent analysis of a law close said that “the transaction appears to be unfair” to accepted investors of On2 Technologies, Inc. (AMEX:ONT) “by declining to conduct an accessible and fair arrangement action for the Company” and the “offer to acquirement On2 Technologies for $0.60 per allotment appears opportunistically timed to crop advantage of the accepted bread-and-butter downturn”. Therefore the analysis is primarily focused on whether Board of Directors of On2 Technologies, Inc.fulfilled their fiduciary duties to aerate actor amount in affiliation with the proposal. Another analysis said the accord is arbitrary because “On2 Technologies banal traded at $0.65 per allotment as afresh as May 13, 2009”.

On2 Technologies, Inc., amid in Clifton Park, NY, a developer of video compression technology and technology that enables the creation, transmission, and playback of multimedia in resource-limited environments, such as cellular networks transmitting to array operated adaptable handsets or top analogue (HD) video transmitted over the Internet. On2 Technologies, Inc. appear in 2007 Total Revenue of $13.24million and in 2008 Total Revenue of $16.27million. Shares of On2 Technologies, Inc. (Public, AMEX:ONT) traded at $ 0.599 per allotment afterwards the advertisement and at $0.39 per allotment the day afore the announcement. Shares of On2 Technologies, Inc. (AMEX:ONT) were down from a 52weekHigh of $0.65 per allotment and over $3.40 per allotment in 2007.