Sun files with the SEC re suits, possible corrupt practices

According to Computerworld, Sun filed a quarterly report with the SEC on Friday which included the fact that no fewer than three shareholder lawsuits are in the works to stop the planned takeover of Sun by Oracle. The suits claim that the price is too low and that there was a “breach of fiduciary duty against the individual defendants and for aiding and abetting a breach of fiduciary duty against the corporate defendants.” Sun also wrote in the filing that it may have broken the U.S. Foreign Corrupt Practices Act (FCPA) during fiscal 2009 in an unspecified country. If violations are found, the FCPA provides for potential monetary penalties, criminal sanctions and in some cases debarment from doing business with the U.S. federal government. Sun said that it has already “initiated an independent investigation with the assistance of outside counsel and [taken] remedial action.” The company has also “made a voluntary disclosure with respect to this and other matters to the Department of Justice (DOJ), Securities and Exchange Commission (SEC) and the applicable governmental agencies in certain foreign countries regarding the results of our investigations to date” and is “cooperating with the DOJ and SEC in connection with their review of these matters.”