Labaton Keller Sucharow is co-lead counsel representing shareholders of Oracle Corporation (Oracle) in a derivative lawsuit on behalf of Oracle, alleging breaches of fiduciary duties and seeking contribution and indemnification from defendants Safra A. Catz, Mark V. Hurd, Lawrence J. Ellison, and Thomas Kurian for alleged violations of Sections 10(b) and 20(a) of the Exchange Act and SEC Rule 10b-5.
In 2019, two stockholder derivative actions were filed on behalf of Oracle. On June 26, 2019, the Court consolidated the cases and appointed City of Providence as Lead Plaintiff and Cotchett Pitre & McCarthy, LLP and Labaton Sucharow LLP (n/k/a/ Labaton Keller Sucharow LLP) as Co-Lead Counsel. The Court also temporarily stayed the Action pending its decision on any motion to dismiss filed by defendants in a related securities class action, In re Oracle Corporation Securities Litigation, Case No. 5:18-cv-04844-BLF, but permitted Lead Plaintiff to file a consolidated complaint.
Following a thorough investigation, on July 8, 2019, Lead Plaintiff filed its Verified Stockholder Derivative Complaint against defendants alleging, among other things, that the Individual Defendants made misleading statements and omissions to Oracle’s stockholders concerning the revenue drivers of Oracle’s cloud services.
On March 22, 2021, the Court issued an order granting in part and denying in part a motion to dismiss the related securities class action. On June 4, 2021, Lead Plaintiff filed a Consolidated Amended Verified Stockholder Derivative Complaint.
On March 22, 2024, after extensive mediated settlement discussions, the Parties reached a settlement on behalf of Oracle in which the Company would adopt, implement, and maintain corporate governance measures aimed directly at improving the process for disseminating information to public investors. The reforms will be in place for a period of five (5) years from the Effective Date of the Settlement, unless otherwise modified pursuant to the terms of the Settlement. The terms of the Settlement are summarized in the Settlement Notice and the full terms of the Settlement are in the Stipulation of Settlement, dated March 22, 2024.
A Settlement Fairness Hearing was held on November 14, 2024 and the Court approved the Settlement.
The case is In re Oracle Corp. Stockholder Derivative Litigation, No. 5:19-cv-00764-BLF (N.D. Cal.). Labaton Keller Sucharow represents City of Providence.
