Judge Sides With Oracle Founder in Shareholder Lawsuit Over NetSuite Acquisition

 A Delaware judge has ruled in favor of Oracle founder Larry Ellison in a shareholder lawsuit alleging that he coerced the technology company’s board into paying a grossly inflated price to acquire software company NetSuite Corp. in 2016.

Vice Chancellor Samuel Glasscock III on Friday rejected the plaintiffs’ allegation that Oracle’s acquisition was not entitled to the deference traditionally shown corporate decision-makers under Delaware’s “business judgment” rule.

The shareholders argued that the $9.3 billion deal should be subjected to a more rigorous “entire fairness” review because Ellison was both a controlling shareholder of Oracle at the time and owned almost 40% of shares in NetSuite, which he cofounded in 1998. The lawsuit alleges that Oracle overpaid for NetSuite by $3 billion.

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