Leap Wireless International Inc., which manufactures the Cricket prepaid mobile-phone service, has been sued in the Delaware Court of Chancery by a shareholder who alleges that a proposed $1.2 billion merger with AT&T Inc. undervalues the company.
David G. Booth, the founder of Dimensional Fund Advisors, an Austin, Texas, financial company, filed the lawsuit on behalf of the Booth Family Trust late Monday night. The 20-page complaint claims that Leap Wireless' board breached its fiduciary duties by accepting AT&T's offer of $15 per share, which valued the company at $1.2 billion, because the buyout does not maximize shareholder value or consider Leap Wireless' prospects for future growth.
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