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Microsoft Leaders Sued Over Rescue Deal for Gates and Hoffman

Guavy AI Editorial Team
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MSFT
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Three Microsoft Corp. investors have filed a shareholder derivative suit against the company's leaders over claims they wrongfully approved a licensing agreement with Inflection AI Inc.

The deal, signed in March 2024, was aimed at rescuing Bill Gates and Reid Hoffman from financial losses incurred after their investments in Inflection AI soured.

The lawsuit alleges that the Microsoft executives breached their fiduciary duties by approving the agreement without properly informing shareholders about its terms and potential risks.

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