As Thomas Patterson examined on Oct. 3 in an InsideCounsel opinion piece, disputes between shareholders can be extremely tough to handle, especially when litigation is involved. Larry Ellison, CEO of Oracle Corp., just learned this lesson the hard way: He will forgo a potential $575 million payment tied to the acquisition of a software maker in order to settle investor
’s claims over the deal.
In 2011, Oracle purchased Pillar Data Systems Inc., a closely held provider of data storage systems, with Ellison controlling 55 percent of the company. The deal required no up-front compensation and allowed for an earn-out payment over the next three years, according to Bloomberg.