Saturday, September 17, 2005

Larry Ellison's $100 Million "Charitable" Contribution to Resolve Insider Trading Claim

An earlier post (here) discussed the settlement by Oracle CEO Larry Ellison of a law suit in California alleging that he sold $900 million of Oracle stock while he was privy to information about declining earnings at the company that were announced only a month later, i.e. insider trading.  Ellison has agreed to make $100 million in charitable contributions spread over five years.  On our sister blog Business Law Prof, Dale Oesterle has an extensive discussion of the settlement, and the parallel Delaware Chancery Court case in which Vice-Chancellor Leo Strine dismissed the case on a summary judgment motion, and the post (here) wonders whether he was hoodwinked by Ellison.  Paul Caron, emperor of the LawProf Blog empire, has a post on sister blog TaxProf (here) that considers that all-important question whether the donations to charity are deductible, and for reasons that he explains far better than I can understand the answer appears to be "No" (thank goodness). (ph)

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