Shoot-out at the legal corral
"... you've got to ask yourself one question: 'Do I feel lucky?' Well, do ya, punk?"
Three members of Oracle's board of directors say a class-action lawsuit, filed against Oracle in the US by Oracle shareholders over Oracle's 2016 acquisition of NetSuite, should go forward. In a filing to the Delaware Chancery Court [PDF], the three-person Special Litigation Committee – a group comprised of members from Oracle …
As far as I can make out the action is aimed to getting Oracle to sue Ellison & Katz on shareholders' behalf. Why the shareholders don't sue them directly is less clear. After all, if they get a payout from Oracle its their own money - shareholders' funds - that the payout would be taken from.
How is it that the Board of a company gets to decide if a class-action lawsuit against itself should proceed ?
Isn't that something for a judge to decide ?
Or has the justice system in the USA just got fed up and handed itself over to corporations because they finally decided that that is how it works anyway ?
Standard Oracle practice is to play hardball as long as they can and then fold to avoid court scrutiny of their business practices. Mars vs Oracle, A&E Adventures vs Oracle, and a couple of other shareholder class actions have all been eventually settled out of court. This is just a slightly more public version of what goes on behind NDAs because of who is involved - SLC appointed to make the issue go away, fails, and so it ends up in court. Interestingly the ongoing Sunshine City Firefighters suit hasn't been resolved yet - case review scheduled for all parties in mid-October. And, hey, JEDI waiting in the wings with yet another appeal ongoing.
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