A US legal firm claims that Oracle exaggerated its sales expectations and talked up 11I, Oracle's enterprise-resource-planning (ERP) and customer-relationship-management (CRM) solution. Ellison, is alleged to have illegally dumped $900 million in shares anticipating a stock revaluation.
The action has been taken on behalf of Local 144 Nursing Home Pension Fund, which bought 50,000 shares of Oracle stock. The Fund paid between $27.45 to $32.70 per share – the shares are now valued at $16.38.
The fund managers believe that "if they had known what Ellison can't have helped knowing last quarter, they'd have dumped their holdings too", said The Register.
Oracle's legal firm will defend the suit.