Oracle CEO to pay US$122mln to settle lawsuit

Nov 23, 2005 1:00 PM
Filed under Data centre

A California judge on Tuesday approved a settlement requiring Oracle Corp chief executive Larry Ellison to pay US$122 million to settle a shareholder lawsuit charging him with insider trading.

SAN FRANCISCO (Reuters) - A California judge on Tuesday approved a settlement requiring Oracle Corp chief executive Larry Ellison to pay US$122 million to settle a shareholder lawsuit charging him with insider trading.

The settlement stems from a lawsuit filed after Ellison sold nearly US$900 million of stock in 2001 shortly before the software maker announced it would miss its quarterly earnings targets. Oracle shares tumbled following that announcement.

In November 2004, a Delaware judge tossed the lawsuit after considering the same facts, while a California state court allowed the case to go forward, an Oracle spokeswoman said.

Ellison, who has denied any wrong-doing, will pay US$100 million to charity and another US$22 million to the lawyers representing the shareholders, Oracle said.

The parties had reached a tentative settlement in September that would have required Ellison to pay US$100 million to charity but not legal fees. The San Mateo Superior Court judge, however, forced both sides to keep negotiating because he did not want the company to pay Ellison's legal fees.

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