Wednesday, September 01, 2004

Nursing Home Pension Fund v. Oracle, Ellison, et al.

A number of purchasers of Oracle Corporation stock (collectively
referred to as "Plaintiffs") appeal the District Court's
dismissal under Rule 12(b)(6) of their revised second
amended complaint ("the Complaint") against Oracle Corporation
and three of its top executive officers (collectively
referred to as "Oracle" or "Defendants"). Plaintiffs' Complaint
alleged that Defendants violated section 10(b) of the
Securities Exchange Act of 1934 ("1934 Act"), 15 U.S.C.
§ 78j(b), and Rule 10b-5, promulgated thereunder. Plaintiffs
further alleged that Oracle is liable under section 20(a) of the
1934 Act, 15 U.S.C. § 78t(a).

The PSLRA was designed to eliminate frivolous or sham
actions, but not actions of substance. This is far from a
cookie-cutter complaint. Together, the false representations,
both as to current facts and future estimated profits and sales,
as well as the improper revenue adjustment and unusual stock
sales, provide a basis for the cause of action against Oracle
and each of its three top executives. We reverse the District
Court's dismissal of the Complaint. 9th Cir. Opinion


Post a Comment

<< Home