By most interpretations, Yahoo’s “rejection” of Microsoft’s offer for it, was more like an attempt to solicit a higher bid. But at least one litigious institutional investor, The Wayne County Employee’s Retirement System of Michigan, saw the action as a dereliction of the board’s duty to shareholders, and has filed the first shareholder suit since the Microsoft bid emerged. The lawyer representing the fund, David Fink told InformationWeek: “We want the board to be responsible and to take this offer seriously, review it appropriately, and respond appropriately… Just saying no is not an appropriate response.” The fund holds 13,600 shares of Yahoo (NSDQ: YHOO).

The article notes one other court action: on the day Microsoft announced its bid, two law firms filed to establish class action status so that it could represent shareholders upset that Yahoo had rejected earlier bids from Microsoft (NSDQ: MSFT). After all, if Yahoo were to agree to a $31 per share sale, there could certainly be disgruntled shareholders upset that the older talks, which might’ve valued Yahoo at even more, ultimately broke down.

• Yahoo Officially Rejects Microsoft Bid: ‘Not In Best Interests’: Yang Explains To Yahoos