Ellison to pay £58.8m to charity to settle lawsuit


Ellison to pay £58.8m to charity to settle lawsuit

Antony Savvas

Larry Ellison, chief executive officer of Oracle, plans to pay $100m (£58.8m) to charity to settle a lawsuit accusing him of insider dealing in 2001.

The shareholder lawsuit settlement is subject to Oracle board approval. In proven shareholder lawsuits the damages are usually paid to the company that is alleged to have suffered from any misdemeanour.

Ellison’s proposal is to pay the money over five years to a charity of his choice. It is not clear whether Ellison’s payments will be tax-deductible.

The lawsuit alleges that Ellison sold almost $900m-worth of Oracle stock ahead of it being announced that Oracle would not meet expected earnings. After the earnings announcement the stock Ellison sold was worth just over half of the original value.

The settlement requires court approval, which is due to meet on 26 September.

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