(Image: Forbes )


By Evan Thomas and Allyson Brown

Anchor Megan Murphy



Trouble is brewing at internet giant Yahoo.
A Yahoo minority investor, Dan Loeb and his investment company, Third Point are invoking the law in their investigation into Yahoo CEO Scott Thompson’s background -- and asking for Yahoo’s records .


The trouble stems from Thompson listing a degree he never earned on his resume — but still being hired by the company.
 

All Things Digital has Third Point’s press release :
 

“Third Point demands ‘under Section 220(b) of the Delaware General Corporation Law to inspect books and records relating to the hiring of CEO Scott Thompson, the appointment of Patti Hart to the Yahoo! Board, and the selection of Board Members…’”


Third Point’s reason for all this is to find out whether Thompson intentionally lied … and why the higher ups at Yahoo didn’t fact check .

“They’re really all about how Scott Thompson was picked, what he said about himself, what directors asked about him, and then how the company evaluated that information.”


But some believe Loeb’s attention stems from a personal vendetta.
Loeb has repeatedly demanded representation on the board.
And PCWorld says this is another case of Yahoo’s chronic problem -- board infighting.


“Gee, a high-tech CEO brought down by a disgruntled board member -- where have I heard that before? Oh yeah -- at Yahoo, about a half-dozen times now. That story is familiar to anyone who's followed Yahoo's frankly hilarious history over the last five years.”



Business Insider polled employees lower on the totem pole …. here are some reactions -- that Business Insider characterizes as representative of the overall sentiment at Yahoo.


“He cheated and lied his way to his position at PayPal, didn't get caught, got brazen, and decided to swing it to become a CEO of an ailing giant. I hope he falls hard and lands on his thick head!

...


“... we are all very unhappy about the resume issue... not because of the issue itself but because we have had so much drama. It's becoming unbearable and this is the icing on the cake …”



No official response from Yahoo yet, but The Washington Post reports the board has met to discuss the situation. Loeb says he could file a lawsuit against Yahoo for any documents relating to Thompson.