In re Oracle Corp Derivative Litigation
In re Oracle Corp Derivative Litigation | |
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Court | Delaware Supreme Court |
Citation(s) | 824 A.2d 917 (2003) |
Keywords | |
Derivative action |
In re Oracle Corp Derivative Litigation, 824 A.2d 917 (2003) is a US corporate law case, concerning the derivative suits in Delaware.
Facts
A group of shareholders in the Oracle Corporation sought to bring a derivative suit on allegations of insider trading against the corporation's directors. The shareholders made a demand on the board to litigate, and this was rejected. The shareholders therefore asked the court for permission to bring the claim on the basis of the director's personal ties, and that the board was conflicted.
Judgment
The Delaware Court held that the derivative claim, based on insider trading, against Oracle Corp CEO Larry Ellison could proceed. The director had personal ties, and so a decision by the board to reject the claim could not be conclusive.
Significance
The case was subsequently settled.
See also
Notes
References
- 'Oracle's Chief in Agreement to Settle Insider Trading Lawsuit' (12 September 2005) NY Times