Monday, September 12, 2005

Civil Insider Trading Case May Be Resolved With A Charity Benefitting

A civil action alleging insider trading may be resolved by a payment of $100 million dollars to a charity.  The New York Times reports here that the CEO of Oracle has agreed to pay this sum "to resolve a lawsuit charging that he engaged in insider trading in 2001."  The agreement is subject to approval by the board. This type of resolution is certainly different and one has to wonder if this could have happened if DOJ were doing the negotiating, as opposed to this being a derivative shareholder suit. So, which charity will receive the funds - -it seems the CEO may get to choose.

(esp)

http://lawprofessors.typepad.com/whitecollarcrime_blog/2005/09/civil_insider_t.html

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