Oracle Corp. co-founder and CEO Larry Ellison has agreed to give $100 million to the Ellison Medical Foundation over the next five years to settle a shareholder lawsuit, the San Jose Mercury News reports.
The civil suit alleges that Ellison violated California's insider trading laws by selling twenty-eight million shares of Oracle stock, worth an estimated $900 million, in 2001, shortly before the software company's stock plunged after the company missed earnings forecasts. As part of a San Mateo Superior Court settlement reached in November, Ellison is required to donate $100 million to charity and pay $22 million in attorneys' fees.
The Bethesda, Maryland-based foundation will disburse the funds to American universities and laboratories conducting biological research on the aging process and age-related diseases and disabilities. The gift is unrelated to the $115 million Ellison pledged to Harvard University in 2005 to create a research center dedicated to global health. A source close to Ellison said the pending departure of Harvard's president, Lawrence Summers, has adversely affected Ellison's decision to fulfill that pledge.
In a statement, lawyers representing Oracle shareholders called the settlement "an excellent resolution."