A federal judge ruled that Oracle Corp. Chief Executive Larry Ellison should have preserved emails and audiotapes related to a shareholder lawsuit against the Redwood Shores, Calif., software company.
The lawsuit, filed by Nursing Home Pension Fund in U.S. District Court in San Francisco, alleges that Oracle and Mr. Ellison intentionally misled investors during Oracle's 2001 fiscal year. The plaintiffs argue that Mr. Ellison knew that a slowing economy would have a negative impact on Oracle's earnings but failed to share this information with investors.
In a ruling Tuesday, U.S. District Judge Susan Illston, ruled that Mr. Ellison should have shared with the plaintiffs emails he sent and received during this period. Mr. Ellison only produced 15 emails from his account, plus approximately 1,650 emails that were taken from other people's accounts, according to court documents.
Judge Illston also ruled that Mr. Ellison should have turned over recordings of interviews conducted during this time by a biographer. Lawyers for Mr. Ellison argued that the recordings, which have since been destroyed, were the property of the biographer, according to court documents.
In the absence of the evidence, Judge Illston ruled that a judge or jury hearing the case should infer that the missing emails and recordings would reflect negatively on Mr. Ellison.
In the same ruling, Ms. Illston dismissed broader claims by the plaintiffs that Oracle should be sanctioned for failing to preserve evidence. The judge also denied a request by the plaintiffs for a summary judgment that Oracle intentionally made false statements about its financial state.
The lawsuit was originally filed in 2001 and has been dismissed twice. A trial is set for 2009. An Oracle spokeswoman declined to comment.
Ben Worthen |
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