In The News . . . . Oracle Corp. Reaches Settlement In Shareholder Suit Involving Merger With Larry Ellison-Controlled Pillar Data System

$15 Million is the Stipulated Fees/Costs To Plaintiffs’ Counsel Under Clear Sailing Provision.

     Oracle Corp., the largest marker of database software, has signed a June 13, 2014 settlement agreement with shareholders challenging its merger with Pillar Data System, a company in which Oracle founder Larry Ellison had a 55% interest—claiming the merger unfairly benefited Mr. Ellison. Under the settlement stipulation filed with the Delaware Chancery Court, a copy of which we link to here, Mr. Ellison agreed to pay 95% of his earn-out share from the merger, and Oracle agreed to pay $15 million in fees and costs under a clear sailing provision with a wrinkle we have not seen often: the underlying settlement is still good even if the fees are not awarded as requested under the clear sailing clause. Earlier, Oracle had lost a bid to have insurers pay out $20 million in fees, but the denial was without prejudice.

Alexander coercing the Delphic Oracle.  Andre J. Castaigne, artist.  1898. Library of Congress.

BLAWG BONUS:  “Alexander the Great visited the Delphic Oracle wishing to hear a prophecy that he would soon conquer the entire ancient world. To his surprise the oracle refused a direct comment and asked him to come later. Furious, Alexander the Great dragged Pythia by the hair out of the chamber until she screamed ‘Let go of me; you’re unbeatable’. The moment hearing this words he dropped her, saying ‘Now I have my answer’.”  List of oracular statements from Delphi, Wikipedia.