September 27, 2005
Ellison Settlement Rejected by Judge
Ellison's offer to settle a shareholder derivative suit over allegations of insider trading, which I discussed previously here, hit a snag. A sensible state superior court judge in Redwood City California asked the simple question: Why should the company pay $23 million to plaintiffs' lawyers when the firm itself is not getting a dime?" The $100million offered will go to a charity picked by Ellison. The judge has asked for briefs and a hearing on the question, scheduled in November. I suspect that the judge's request will change the nature of the settlement before the hearing. I personally hope that Ellison submits to his famous stubborn side and tries to justify the settlement in the November hearing. The argument will be high comedy as the very clever try to convince us that black is white (or vice versa).
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