Oracle is in the middle of an interesting lawsuit in which its own board committee has given approval for a shareholder-initiated lawsuit to proceed on behalf of the company against its chairman Larry Ellison, CEO Safra Catz and other board members.
The suit alleges that Oracle’s directors greatly overpaid when they crafted a deal to buy NetSuite for $9.3 billion in 2016.
NetSuite is a company that Ellison cofounded and controlled with about a 40% stake. He was paid around $4 billion cash when Oracle bought it, the suit says.
The lawsuit lists a lot of details on how the multi-billion deal went down.
It’s an inside look at the kind of board-level politics that happen when a company spends a mint on a deal that’s loaded with conflicts of interest.
Click here for more BI Prime stories.
As we previously reported, Oracle is in the middle of a jaw-dropping lawsuit against its founder and chairman Larry Ellison, its CEO Safra Catz and a whole list of other current board members over Oracle’s $9.3 billion acquisition of NetSuite in 2016.
The lawsuit alleges that Oracle’s directors overpaid for NetSuite, serving Ellison’s interests, not Oracle’s.
Because Ellison owned the controlling interest, about 40%, …read more
Source:: Businessinsider – Technology