Pre-trial Skirmishing Starts In Oracle/PeopleSoft Suit - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Government // Enterprise Architecture

Pre-trial Skirmishing Starts In Oracle/PeopleSoft Suit

Lawyers for the U.S. Justice Department and Oracle this week tried to block each other’s witnesses.

Pre-trial skirmishing got underway, this week, in the lawsuit over Oracle Corp.'s attempted hostile takeover of PeopleSoft Inc., as lawyers for the U.S. Justice Department and Oracle tried to block each other's witnesses from testifying in the case in Federal District Court in San Francisco.

In pre-trial filings, the Justice Department claimed that the price of some software would rise if the takeover was accomplished. One of its proposed expert witnesses, Professor Preston McAfee, of the California Institute of Technology, estimated that the cost of financial-management and human-resources software could rise by from 5 to 28 percent after a merger of the two firms.

However, Oracle is seeking to exclude McAfee and two other expert witnesses designated by the Justice from testifying in the case. The Justice Department has asked that Oracle's proposed witness, Dale Kutnick, chief executive of the Meta Group market-research firm, be excluded from testifying.

A decision was not immediately made by the presiding judge, Vaughn Walker. The actual trial is scheduled to get underway Monday, and is expected to take four weeks.

Oracle began its hostile attempt to acquire PeopleSoft last June, offering to buy out the smaller firm. Regulatory questions arose almost immediately, with both the Justice Department and the European Union's Competition Directorate launching investigations into the matter.

At the heart of the case is the issue of market definition. Oracle says the relevant market is a large affair, with many robust competitors; PeopleSoft and, later, the Justice Department, maintain that the software market at issue is a focused world, dominated by the two firms, and also by SAP. The EU case is still in the investigative stage.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
10 Ways to Prepare Your IT Organization for the Next Crisis
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/20/2020
IT Spending Forecast: Unfortunately, It's Going to Hurt
Jessica Davis, Senior Editor, Enterprise Apps,  5/15/2020
Helping Developers and Enterprises Answer the Skills Dilemma
Joao-Pierre S. Ruth, Senior Writer,  5/19/2020
White Papers
Register for InformationWeek Newsletters
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
Flash Poll