Oracle CEO To Pay $100 Million To Charity to Settle Suit

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Oracle CEO Larry Ellison has reached a settlement over a shareholder lawsuit that claims that he was involved with and profited from insider trading in 2001.

For his settlement, provided that it is approved by Oracle’s board, Ellison will pay $100 million to charities of his own choice.

“The plaintiffs believe this is a very innovative settlement providing a positive benefit to Oracle,” Joseph Tabacco Jr., a lawyer for one of the shareholders involved in the suit told the New York Times. Reuters reports:

The lawsuit charged that Ellison sold almost $900 million of shares before news that Oracle would not meet its expected earnings target. The same amount of stock, after the announcement, was worth slightly more than half as much, the Times said.

According to the court docket for the case, which was filed in Superior Court in San Mateo, California, a hearing on the settlement-which requires court approval-is scheduled for September 26. Under the terms of the agreement, the lawyers who brought the case for shareholders would receive about $22.5 million, separate from the $100 million payment, the Times report said.

Former Oracle Chief Financial Officer Jeffrey Henley was also originally on Ellison’s end of the suit, but was eventually dropped from the case.

Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.

Oracle CEO To Pay $100 Million To Charity to Settle Suit
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