Three members of Oracle's board of directors say a class-action lawsuit, filed against Oracle in the US by Oracle shareholders over Oracle's 2016 acquisition of NetSuite, should go forward.
In a filing to the Delaware Chancery Court [PDF], the three-person Special Litigation Committee – a group comprised of members from Oracle's board assigned to help mediate a settlement – says it believes that both sides of the legal brouhaha will benefit from the matter being aired in court.
The class-action suit, brought against Big Red by its own shareholders in 2017, alleges that chairman Larry Ellison and co-CEO Safra Katz acted against the best interests of the database goliath.
Instead, it is claimed, Ellison put his own interests ahead of the business, by pushing through the $9.3bn purchase of NetSuite, an ERP outfit that Oracle's founder just happened to control a 40 per cent stake in.
The shareholders, including the Southeastern Pennsylvania Transportation Authority, reckon Big Red's management only sought to line Ellison's pockets, and lobbed a class-action sueball on behalf of all Oracle investors.
This put the company's board in the unenviable position of being in the middle of a conflict between Oracle's own stock owners and the company's top executives.