A Cadbury PLC (CBY) shareholder, Steward International Enhanced Index Fund, filed a lawsuit against members of the company's board, claiming they had breached their fiduciary duty through their rejection of Kraft Foods Inc.'s (KFT) takeover approach.

Lawsuits aren't uncommon in the midst of large mergers and the fund isn't a prominent shareholder.

The suit was filed in the district court of New Jersey. The suit alleges that the defendants failed to properly consider the premium bid by Kraft. Kraft last month unveiled a proposal to combine the two companies in a deal that valued Cadbury at GBP10.2 billion. Kraft has yet to make a formal offer.

Cadbury said it hasn't received any papers in relation to the suit and is therefore unable to comment.

-Anjali Cordeiro; Dow Jones Newswires; 212-416-2200; anjali.cordeiro@dowjones.com