A pension fund pursuing a shareholder lawsuit over Oracle’s US$9 billion acquisition of NetSuite is entitled to documents Oracle’s special litigation committee compiled supporting the suit, a Delaware judge ruled.
According to Bloomberg, the derivative lawsuit targets Oracle chairman Larry Ellison and the software giant’s other directors, including former Defense Secretary Leon Panetta.
It accuses them of forcing through an underpriced US$109-a-share deal at the expense of shareholders to benefit Ellison, who founded both companies. The case was filed in the Chancery Court by a municipal pension fund.
The shareholders, including the Southeastern Pennsylvania Transportation Authority, reckon Big Red’s management only sought to line Ellison’s pockets, and lobbed a class-action sueball on behalf of all Oracle investors. This put the company’s board in the unenviable position of being in the middle of a conflict between Oracle’s own stock owners and the company’s top executives
Full Content: Bloomberg
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