Yahoo! Shareholders Seek Early Trial

The shareholders' lawyers, however, claim that under the provisions, Yahoo! would be able to fire and reorganize its workforce without any fear of triggering employee benefits.

"Yet if Icahn's slate prevails, Yahoo shareholders will be funding huge cash severance and equity acceleration over the following two years for every employee who is either terminated or who resigns with 'good reason' as that phrase is loosely defined in the Severance Plans," the lawyers maintain. "This discriminatory application of the Severance Plans coerces the stockholder vote."

Icahn has been relying heavily on the arguments laid out by the shareholder lawsuit, quoting generously from it when making his own arguments against Yahoo!, which he criticizes for not being able to reach a merger agreement with Microsoft.

He has cited evidence by the lawsuit that severance expenses at Yahoo! would total $2.4 billion if Microsoft puts in a bid of $35 a share for the company.

Shares of Yahoo! were down 13 cents to $26.45 in recent trading.