Sale Process and Price Per Share Questioned by Shareholders

DALLAS--(BUSINESS WIRE)--At a hearing scheduled by Collin County District Judge Greg Brewer on July 24, shareholders of Dallas-based Electronic Data Systems (EDS) will be asking the Court to postpone the July 31 shareholder meeting on the proposed sale of the company to Hewlett-Packard pending full disclosure and correction of deficiencies in the agreement, said Randall Baron of Coughlin, Stoia, Geller, Rudman & Robbins, LLP in San Diego.

“With increased revenues over the past 12 months and 2008 projections on track, the shareholders are questioning why EDS is accepting what many experts consider to be an undervalued share price,” said Baron.

The proposed sale locks the price of EDS stock at $25.00 per share, prohibits EDS directors from seeking a higher price from alternative bidders and guarantees Hewlett-Packard $375 million if the sale does not go through.

In addition to Coughlin, Stoia, Geller, Rudman & Robbins, LLP and other law firms, the plaintiffs are represented by Baron & Budd, P.C., of Dallas, TX.

“Currently, this deal provides for tens of millions of dollars worth of benefits to EDS management, most of whom will continue to work for HP after the merger,” said Bruce Steckler of Baron & Budd. “But, the average shareholders aren’t even given the option to convert EDS stock to HP stock, so they’re all going to be hit with unexpected tax bills on these undervalued earnings.”

About Baron & Budd, P.C.

For more than 30 years, the law firm of Baron & Budd, P.C. has championed the rights of people and communities harmed by corporate misconduct. With more than 50 attorneys and offices in California, Texas and Louisiana, Baron & Budd enjoys a national reputation as a leader of the plaintiffs' bar. The firm represents individuals with mesothelioma and other diseases caused by asbestos; leukemia caused by benzene; injuries caused by other toxic substances and unsafe pharmaceuticals; water authorities seeking clean-up costs for drinking water contamination; government entities and whistleblowers fighting corporate fraud through qui tam and False Claims Act cases; securities investors defrauded by corporate wrongdoing; and consumers in class actions.

About Coughlin, Stoia, Geller, Rudman & Robbins, LLP

Coughlin Stoia Geller Rudman & Robbins LLP (“Coughlin Stoia”) is a 190-lawyer law firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta. Coughlin Stoia is actively engaged in complex litigation, emphasizing securities, consumer, insurance, healthcare, human rights, employment discrimination and antitrust class actions. Coughlin Stoia’s unparalleled experience and capabilities in these fields are based upon the talents of its attorneys who have successfully prosecuted thousands of class-action lawsuits.