The lawsuit was foreshadowed by a rowdy On2 earnings call last week, during which shareholders repeatedly chastised management for agreeing to sell the company. “We have the world class technology; we sold for just sixty cents,” said one investor. After executives said in response to several questions that they could not offer additional details on the deal, one unnamed caller said, “I hope that you can respond better to the questions when we take you to court.”

On2 executives did acknowledge, however, that they had considered factors beyond price. “Our shareholders will have the opportunity to become shareholders of Google, arguably one of the most innovative and exciting technology companies in the world today,” said interim CEO Matt Frost in his prepared remarks. “Obviously, in evaluating Google’s offer, the board considered a number of factors in addition to price. Some of these other factors included risks of competition, adoption of new technologies, the company’s limited cash position, the form of consideration being Google shares, and other factors that will be described in On2’s proxy statement when it’s filed with the SEC.”