Submission + - IBM settles SCO case after 18 years for $14.5MM
rkhalloran writes: Papers filed 26 Aug by IBM & SCOXQ in US Bankruptcy Court in Delaware for a proposed settlement:
Case 07-11337-BLS Doc 1501
By the Settlement Agreement, the Trustee has reached a settlement with IBM that resolves all of the remaining claims at issue in the Utah Litigation (defined below). The Settlement Agreement is the culmination of extensive arm’s length negotiation between the Trustee and IBM. Under the Settlement Agreement, the Parties have agreed to resolve all disputes between them for a payment to the Trustee, on behalf of the Estates, of $14,250,000. For the reasons set forth more fully below, the Trustee submits the Settlement Agreement and the settlement with IBM are in the best interests of the Estates and creditors, are well within the range of reasonableness, and should be approved.
Interesting note in the justification:
Such could be the case should a jury find that (1) the amount of damage SCO sustained as a result of IBM’s conduct is less than SCO has alleged, (2) SCO’s damages are limited by a $5 million damage limitation provision in the Project Monterey agreement, or (3) some or all of IBM’s Counterclaims, alleging millions of dollars in damages related to IBM’s Linux activities and alleged interference by SCO, are meritorious.
Case 07-11337-BLS Doc 1501
By the Settlement Agreement, the Trustee has reached a settlement with IBM that resolves all of the remaining claims at issue in the Utah Litigation (defined below). The Settlement Agreement is the culmination of extensive arm’s length negotiation between the Trustee and IBM. Under the Settlement Agreement, the Parties have agreed to resolve all disputes between them for a payment to the Trustee, on behalf of the Estates, of $14,250,000. For the reasons set forth more fully below, the Trustee submits the Settlement Agreement and the settlement with IBM are in the best interests of the Estates and creditors, are well within the range of reasonableness, and should be approved.
Interesting note in the justification:
Such could be the case should a jury find that (1) the amount of damage SCO sustained as a result of IBM’s conduct is less than SCO has alleged, (2) SCO’s damages are limited by a $5 million damage limitation provision in the Project Monterey agreement, or (3) some or all of IBM’s Counterclaims, alleging millions of dollars in damages related to IBM’s Linux activities and alleged interference by SCO, are meritorious.
