Oracle Investors Chalk Up SAP Victory
REDWOOD SHORES, Calif. (
) --
Oracle
(ORCL) - Get Oracle Corporation Report
and its investors chalked up a big victory, with the database giant winning a massive
$1.3 billion in software theft-related damages
from rival
SAP
.
Pat Walravens, an analyst at JMP Securities, said the award represents a benefit of about 25 cents per share for Oracle shareholders, while SAP investors stand to lose $1.20 a share on full-year earnings.
Oracle CEO, Larry Ellison |
Wednesday's verdict, which followed more than three weeks of courtroom tussles, is a record payout for software piracy and pushed Oracle's shares up 56 cents, or 2.04%, to $27.75 in morning trading on Thursday. SAP's stock, however, went in the opposite direction, falling 74 cents, or 1.52%, to $47.95 before market open.
Oracle
demanded $1.7 billion in damages
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from its German rival, although SAP, which had already admitted the theft by its
now-defunct TomorrowNow subsidiary
, offered to pay a sum closer to $40 million.
"The open questions at this point are whether SAP will appeal the verdict and whether the Department of Justice may file criminal charges in the case," explained JMP's Walravens, in a note released on Thursday. An FBI agent, he added, was frequently present in the courtroom.
A spokeswoman for the Department of Justice told
TheStreet
that she doesn't comment on speculation.
SAP said that it was disappointed with the jury's verdict in a statement that came out late on Wednesday. The company will "consider all available options," it added. "This will unfortunately be a prolonged process and we continue to hope that the matter can be resolved appropriately without more years of litigation."
The verdict ensures that
Oracle's firebrand CEO Larry Ellison
will enjoy a very happy Thanksgiving. Ellison, famed for his
belligerent leadership style
and
was unable, however, to subpoena
, now in charge at
HP
, to appear at the Oakland, Calif. courthouse.
--Written by James Rogers in New York.
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.
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