Oracle directors approve lawsuit against founder Ellison

Oracle directors approve lawsuit against founder Ellison

The acquisition of NetSuite by Oracle in 2017 was not approved by all the company’s shareholders, especially by the price of $ 9.3 billion (8.4 billion euros). A number of members of Oracle’s board of directors have now approved a lawsuit from a pension fund, reports Reuters. The indictment is that CTO and founder Larry Ellison and co-CEO Safra Catz failed to meet their obligations to the company in the deal.

The two top managers are accused in a few words of having acquired NetSuite for too high a price. Ellison itself is a shareholder in NetSuite, and was also involved in its creation. A pension fund for firefighters from St. Louis is the original source of the indictment. The Fund claims that the Board of Directors was too close to Ellison to decide for itself whether a lawsuit should be brought. A special committee of three members of Oracle’s board of directors now writes in a letter to the Delaware court that they support the charges.

Compensation of several billions

The Committee writes in the letter that it wants the court case of the pension fund to be carried out, on behalf of Oracle. Reuters also reports that one of the pension fund’s lawyers claimed that any damages could amount to several billions. In fact, the board of directors has now approved the requirement for amounts of that order of magnitude to be paid by members of their own company.

NetSuite was acquired by Oracle in 2017 to improve the company’s position in the cloud market. Earlier we wrote an article about the potential that NetSuite has for Oracle as an example of how cloud works. In short, it is Oracle’s hope that this obstacle will not take up too much time.

This news article was automatically translated from Dutch to give a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.