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Wednesday, November 23, 2005

And Pacino will play him in the movie

Larry Ellison has settled the California suit alleging that he committed insider trading by selling his shares prior to a downturn in 2001.  Details here.  Ellison will pay $100 million to a charity of Oracle's choosing as well as $22 million to the plaintiffs' attorneys.  One of those attorneys opined that the settlement was "an extraordinary result and certainly one that is of great benefit to Oracle."  It is a little hard to see, however, how Oracle benefits from a charitable gift made by Ellison.  The gift may not even be tax-deductible for the corporation.  And who at Oracle gets to choose the charity?  I'm assuming it won't be Stanford.

This latest event is yet another in a string of fascinating corporate law developments relating to Ellison.  There's the great Chancellor Strine opinion about Oracle's special committee, as well as the fascinating issues that arose around the Oracle-PeopleSoft merger.  Ellison has also been good for business books, too, prompting a slew of unofficial biographies.  I'm still waiting for the movie.  And given this face, is there any doubt that Al should get the role?

You sharpen the human appetite to the point where it can split atoms with its desire; you build egos the size of cathedrals; fiber-optically connect the world to every eager impulse; grease even the dullest dreams with these dollar-green, gold-plated fantasies, until every human becomes an aspiring emperor, becomes his own God . . . and where can you go from there?

Posted by Matt Bodie on November 23, 2005 at 12:49 AM in Corporate | Permalink


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Schedule C for a publicly traded corporation? Wow. Great call. I think the previous commenter was either an idiot or had spent the last two days home alone with two kids in diapers. Form 1120 of course.

Posted by: Bruce Godfrey | Nov 27, 2005 9:31:50 AM

Congratulations Matt on your continued professional success.

Re the tax deductibility issue, it is an open question, one likely to generate the attention of the IRS either way. I am not a tax guru but it occurs to me that if Oracle lost taxable income as a result of Ellison's activities, or otherwise was seeking punitive damages, the Service will put up a fight to make Oracle recognize as income the $100 Mill before taking the deduction, i.e. a net wash on Schedule C.

Re Pacino, I defer to your dramatic casting eye.

Posted by: Bruce Godfrey | Nov 26, 2005 10:28:46 PM

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