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To: pbull who wrote (11409)	3/10/2001 9:47:24 PM
From: pbull	Respond to of 13572

Oracle's CEO Sued Over Stock Sale Comment: We as individuals monitor insider selling; why can't "professionally managed" pension funds exercise a similar level of diligence? By David Kravets Associated Press Writer Saturday, March 10, 2001; 5:06 a.m. EST SAN FRANCISCO –– A small pension fund has sued Oracle chief executive Larry Ellison, alleging he engaged in insider trading when he sold a large amount of company stock prior to a dismal earnings report. Oracle spokeswoman Jennifer Glass said the civil lawsuit is "entirely without merit and will be defended vigorously." The lawsuit alleges Ellison unlawfully dumped at $32 per share nearly $900 million worth of stock, a fraction of his holdings, during the fiscal third-quarter, which ended Feb. 28. The lawsuit claims Ellison took advantage of insider information that included knowledge that the software giant would not meet third-quarter expectations. The lawsuit was filed in U.S. District Court by Local 144 Nursing Home Pension Fund. Since December, the fund has purchased nearly 50,000 shares of Oracle stock from a low of $27.45 per share to a high of $32.70 per share. Oracle warned March 1 that third-quarter earnings would fall below forecasts because of a sudden slowdown in sales caused by the country's slumping economy. The suit, however, claims Oracle concealed that it would experience costly outlays to fix problems with its 11iSuite software. Preliminary results for the third quarter estimated Oracle earnings will be 10 cents a share. Analysts were expecting 12 cents a share. On Friday, Oracle shares dropped $1.13 to $16.38 on the Nasdaq Stock Market, nearly half their value when Ellison sold shares and well below a 52-week high of $46.47.