Well, the past few years have been rough for Oracle on the legal front. They lost 3 Billion over the itanium fiasco with HP. Oracle lost to former sales reps who sued for commissions that were not paid. The SEC may be investigating them for certain "revenue accounting" principles after a whistle blower came forward on cloud credits, and now a new class action law suit on "excessive fees" charged to Oracle employees on how the 401k's have been confirmed by a judge.
Its bad enough for Oracle, but even worse for the employees. After getting a new CEO also known for being "The Hatchet Man", they have lost car allowances, vacation benefits (Mandatory Holiday Vacation), and been fired by the thousands (1.1 Billion in severance packages scheduled for this year, with over $400 Million to go) with no idea who is next or when the next massive layoff will come. But, wait there is more in addition to the lack of job security and dwindling benefits the Oracle employees have been on the losing end of the 401K plan.
Apparently the rats have gotten into the employees 401k cookie jar and made a mess of things. They've been hit with excessive management fees and made some rather impudent investments (possibly in fly by night stocks with addresses of back alley ways and base ball fields as the operating location of the business fronts, hustled by shady brokers in boiler room operations). In other words the rats have left some rat p--p on the 401k cookies.
https://www.plansponsor.com/oracle-excessive-fee-suit-gets-class-certification/
U.S. District Court Judge Robert E. Blackburn of the U.S. District Court for the District of Colorado has granted a motion for class certification in a 401(k) excessive fee suit filed against Oracle Corporation.
The lawsuit alleges that the defendants allowed Fidelity to collect excessive and unreasonable recordkeeping and administrative fees from the plan, and thy caused the plan to make certain imprudent investments. The lawsuit has already survived a motion to dismiss.
The excessive fee class was defined as “All participants and beneficiaries of the Oracle Corporation 401(k) Savings and Investment Plan from January 1, 2009, through the date of judgment, excluding defendants.”
This lawsuit concerns the Oracle 401(k) Savings and Investment Plan (“the Plan”), a defined contribution retirement benefits plan sponsored and maintained by defendant Oracle Corporation (“Oracle”) for the benefit of its employees. Oracle is the named fiduciary and administrator of the Plan. The Plan currently has more than 70,000 participants and manages over $12 billion in assets.
Pursuant to the terms of a Trust Agreement, Oracle delegated to the Oracle Corporation 401(k) Committee (“the Committee”), inter alia, its fiduciary responsibility for determining investment options for the Plan.2
It also delegated its duties to serve as recordkeeper and trustee for the Plan to Fidelity Management Trust Company (“Fidelity”). In return for these services, Oracle agreed to pay Fidelity reasonable administrative expenses.
By this lawsuit, named plaintiffs seek to represent a class consisting of All participants and beneficiaries of the Oracle Corporation 401(k) Savings and Investment Plan from January 1, 2009 through the date of judgment, excluding the Defendants.
This putative class asserts four claims based on two primary allegations: (1) that defendants allowed Fidelity to collect excessive and unreasonable recordkeeping and administrative fees from the Plan; and (2) that defendants caused the Plan to make certain imprudent investments. Defendants do not oppose class certification per se...
Wow... what a rotten time to be an Oracle employee. Its not really old news as it is still happening right now. Its definitely not fake news as it is well documented.
@RvftlcC - Made a post detailing with workings of MH. The CEO with the hatchet has eliminated over 52,000 jobs at 3 companies. The damage was so severe that one of the companies (NCR was acquired by AT&T) was in such bad shape that AT&T reversed the merger. Its a great read with a good history of what has happened and what is happening now at Oracle.
Someone commented that 58,000 american soldiers died in Vietnam.
@RvftlcC-1tne - commented
The only statement that can be made is that one man has had a terrible impact on 3 companies and over 52,000 American families. I'd would say MH is a different kind of Vietnam, a moral and economic war we are losing here in corporate America.
It looks like Oracle has hit every possible low that a company could hit with its employees. From not paying commissions, to removing benifits, to massive year long layoffs... to messing with the employees retirement. There really is nothing left to do... oh yeah... finish the layoffs!