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11 May 2009, 12:26

Sun shareholders sue over the Oracle acquisition

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In April, shareholders of the UNIX and server specialists Sun Microsystems submitted three putative class actions against the acquisition by Oracle. Sun's quarterly report (see page 23) to the US Securities and Exchange Commission (SEC) says that, in all three cases, the group is accused of neglecting it's fiduciary duty and that the terms of the acquisition were "unfair and inadequate." So far, Sun and the other defendants have not responded to the complaints put forward by the shareholders.

On the 20th of April, Oracle announced that they had purchased Sun Microsystems for $9.50 per share, at a total cost of $7.4 billion including Sun's debts. According to the report, the first class action was submitted to the Santa Clara County Superior Court on the same day.

The report to the SEC goes on to show possible cases of corruption by Sun involving foreign subsidiaries. The company has already informed the Securities and Exchange Commission and the US Justice Department about the potential violations of the Foreign Corrupt Practices Act. According to a report by the Wall Street Journal, Sun had informed Oracle about the investigations before the takeover agreement was signed.

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