Oracle Investor Jordan Weinrib Sues Over $200 Million Settlement

Posted on Mar 23 2012 - 9:09am by Editorial Staff

Reuters is reporting that an Oracle investor sued the company and members of its board of directors over alleged $200 million settlement. The lawsuit was filed in Delaware state court by investor Jordan Weinrib said the defendants, including Oracle CEO Lawrence Ellison and other past and present members of the company’s board of directors, breached their duty to shareholders by engaging themselves in prolonged litigation over the whistleblower’s allegations.

Weinrib said in the complaint: “The board forced the government to expend additional resources litigating the action when the board knew the company was in a significant liability position and that additional litigation would certainly raise the ultimate price of settlement.

“Despite substantial evidence of wrongdoing, Oracle’s board of directors did not admit that these acts had occurred, enact remedial measures and negotiate a resolution that involved a small payment,” Weinrib said in the complaint. Instead, by litigating the case, Oracle drove up the ultimate settlement price, harming taxpayers and shareholders alike, Weinrib said.

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