JD Edwards sues Ellison and Oracle for $1.7bn

NEWS JD Edwards is suing Larry Ellison, two Oracle executives and Oracle itself in two separate actions in California and Colorado for illegally interfering with its PeopleSoft merger Earlier this week, merger partner PeopleSoft had left Oracle lawyers waiting at the court after telling them it was planning to sue. In a lawsuit filed in Colorado state court, J.D. Edwards alleges Oracle has "tortiously (legalese for culpably causing damage) interfered" with the deal and asks a court for $1.7 billion in compensatory damages and an unspecified amount in punitive damages. J.D. Edwards said it is also filing suit in California state court against Oracle and two of its executives. That suit charges the company, CEO Larry Ellison and Vice President Chuck Phillips with wrongful conduct and unfair business practices. The suit seeks an injunction to prevent Oracle from proceeding with its tender offer for PeopleSoft. "Oracle's sole aim is to disrupt a merger that will create value for the key stakeholders of J.D. Edwards and PeopleSoft," J.D. Edwards CEO Bob Dutkowsky said in a statement. "Oracle's unsolicited offer for PeopleSoft will only destroy value for our companies' shareholders, customers and employees and the technology community overall. We will not sit by idly while Oracle pursues this arrogant, unlawful and destructive course of action." In a statement, Oracle said it had "just heard of this lawsuit" but added it believes the case has "no merit." Yesterday, Oracle reported its fourth quarter revenue of $2.83bn, up 2 per cent on last year's quarter and profits of $858m as opposed to $656m last year. But revenue for the year has declined 2 per cent to $9.5bn, although profits are up 4 per cent to $2.31bn. Ian Fried writes for news.com