Oracle boss buys off insider trading claims
Cash to charity to drop case
Oracle's boss Larry Ellison has agreed to pay $100m to charity to settle a case accusing him of insider trading.
The lawsuit alleged that Ellison sold $900m of Oracle shares in early 2001 - before the company put out a profit warning which sent its shares tumbling. Ellison successfully defended a similar case in Delaware so it is not clear why he agreed to settle this case.
One of the lawyers in the case, Joseph Tabacco, told the New York Times: "The plaintiffs believe this is a very innovative settlement providing a positive benefit to Oracle."
Oracle refused to comment on the NYT story. The paper also reported that lawyers on the case would receive a separate payment of $22.5m.
The agreement is not yet a done deal and must still be approved by the Oracle board of directors. ®