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Palm settles shareholder suit

Similar class action suits remain open. The smartphone maker will hold a special meeting this month where shareholders can vote on the impending sale to HP.

Almost as soon as the news hit that Hewlett-Packard planned to purchase Palm for $1.2 billion, shareholder lawsuits started rolling in. On Wednesday Palm said it had settled at least one of them.

The suit, Steve Ubaney v. Jonathan Rubinstein, et al., was filed May 5 in Delaware, on behalf of Palm shareholders that thought CEO Rubinstein should have held out for a selling price higher than the $5.70 per share it accepted from HP. In an SEC filing, Palm did not disclose the details of the settlement, which was reached Tuesday.

And other similar class action suits remain open. However, Palm also has hatched a plan to mollify shareholders not happy: It will hold a special shareholder meeting on June 25 where they can vote on the sale.