Oracle’s Ellison Ends Insider Trading Suit

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A $100 million donation to charity will see a shareholder suit against Larry Ellison come to a close.

Once upon a time, in 2001, Oracle CEO Larry Ellison sold nearly a billion dollars in company stock. Oracle’s stock, in spite of upbeat words about the company’s future, dropped in value by half, as sales did not meet expectations. It still has not reached that value since, closing today in the wake of Siebel acquisition news at $13.49 a share.

After the drop from the $30 share price range, Oracle shareholders responded with multiple lawsuits, according to the Mercury News. The drop represented some $85 billion in share value, and shareholders were furious.

The litigation has bounced around courts in California (which heavily favors the investors in such cases) and Delaware (which tends to favor management), as well as the federal appellate system. Now, Mr. Ellison plans to donate $100 million in Oracle’s name to charity; an additional $22.5 million will be paid in legal fees.

A San Mateo County Superior Court judge must approve the settlement. Mr. Ellison has long claimed he did not act on insider information in making his decision to sell. And apparently, he will not be pressed on the issue. Such agreements take place with no one admitting any wrongdoing.

David Utter is a staff writer for WebProNews covering technology and business. Email him here.

Oracle’s Ellison Ends Insider Trading Suit
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