Judge: Oracle probe packed with pals
C|Net | at | by Mike
A committee established by Oracle to investigate stock sales by its CEO Larry Ellison and other members of the board was packed with people with close ties to the business software maker, according to a recent court opinion. In an opinion issued Friday, Delaware Chancery Court Vice Chancellor Leo Strine found that the special litigation committee had "failed to demonstrate that no material factual question exists regarding its independence."
The committee was set up in February 2002 to determine whether Oracle should settle insider-trading suits brought by investors. The lawsuits were filed after Ellison and three other board members sold stocks in 2001, just weeks before the company reported earnings that did not match expectations.