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Update: Ellison's charitable settlement



A California judge has withheld approval of a class action settlement, directing Oracle to explain why its shareholders should pay the $22.5 million in legal fees contemplated by a settlement requiring CEO Larry Ellison to pay $100 million to charity over five years. Check back in mid-November. This is one of three class action suits over the identical stock sale; a Delaware court dismissed the charges as groundless, and a federal suit is pending. (David Bank, "Judge Questions Costs in Oracle Suit", W$J, Sep. 27).

It's worth noting that the settlement doesn't present real consequences for Ellison; Ellison has given $100 million to the Ellison Medical Foundation already, and has already indicated that his billions will be bequeathed to charity. So precisely what result have the plaintiffs' attorneys achieved that merits a $22.5 million award, much less one from Oracle shareholders?

 

 


Rafael Mangual
Project Manager,
Legal Policy
rmangual@manhattan-institute.org

Katherine Lazarski
Manhattan Institute
klazarski@manhattan-institute.org

 

Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.