In re Oracle Corp Derivative Litigation

In re Oracle Corp Derivative Litigation

Court	Delaware Supreme Court
Citation(s)	824 A.2d 917 (2003)
Keywords
Derivative action

In re Oracle Corp Derivative Litigation, 824 A.2d 917 (2003) is a US corporate law case, concerning the derivative suits in Delaware.

Facts

A group of shareholders in the Oracle Corporation sought to bring a derivative suit on allegations of insider trading against the corporation's directors. The shareholders made a demand on the board to litigate, and this was rejected. The shareholders therefore asked the court for permission to bring the claim on the basis of the director's personal ties, and that the board was conflicted.

Judgment

The Delaware Court held that the derivative claim, based on insider trading, against Oracle Corp CEO Larry Ellison could proceed. The director had personal ties, and so a decision by the board to reject the claim could not be conclusive.

Significance

The case was subsequently settled.

Sources on derivative suits

Davenport v Dows, 85 US 626 (1873)

Shaffer v Heitner, 433 US 186 (1977)

Delaware General Corporation Law §141(a)

Delaware Chancery Court Rules, Rule 23.1

Zapata Corp v Maldonado, 430 A2d 779 (Del Sup 1981)

Joy v North, 692 F2d 880 (1982)

Aronson v Lewis, 473 A2d 805 (Del 1984)

In re Oracle Corp Derivative Litigation, 824 A2d 917 (2003)

Meiselman v Meiselman, 307 SE2d 551 (1983)

United States corporate law

Notes

References

'Oracle's Chief in Agreement to Settle Insider Trading Lawsuit' (12 September 2005) NY Times

External links

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