Oracle top executives cleared of insider trading charges

[JURIST] The Delaware Supreme Court [official site] Tuesday cleared Oracle Corp.'s [corporate site] top two executives of allegations of insider trading. In a brief two-paragraph opinion [PDF text], the three-judge Supreme Court panel affirmed without commentary a 2004 Court of Chancery ruling finding that CEO Lawrence J. Ellison [Oracle profile] and Chairman Jeffrey O. Henley [Oracle profile] did not breach their duty of loyalty to the company by selling stock in early 2001 in advance of disappointing earnings news. The Court of Chancery's 94-page opinion [PDF text] relied upon the absence of "any rational motive" that would have led the executives to sell stock on the belief that Oracle's performance was declining. Ellison must still face charges in California under a state statute. AP has more.

 

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