RealTime IT News

SCO, Canopy Mend Board Differences

The SCO Group's chairman of the board solidified his hold on the software company after a settlement was reached with venture firm Canopy Group Friday.

Ralph Yarro, SCO chairman and former Canopy president and CEO, as well as two other former Canopy executives, sued the venture firm after they were sacked in December 2004. They sought $100 million and the right to return to their duties at Canopy.

Canopy's executives countered with a suit of their own claiming Yarro, Darcy Mott, a SCO director and former Canopy CFO, and Brent Christensen, former Canopy corporate counsel, took more than $20 million in improperly acquired compensation from the company.

As part of the settlement reached between the parties Friday, Yarro gains direct control over nearly five-and-a-half million shares of SCO stock, making him the largest shareholder in the company. The three former employees will completely sever their relationship with Canopy, financial or otherwise, and receive an undisclosed amount of cash.

Darl McBride, SCO president and CEO, said he is pleased to put the issue of Canopy's involvement in the company to rest and end any uncertainty that might have been caused as a result.

"As SCO's largest shareholder, we look forward to Ralph Yarro's continued leadership and guidance as chairman of the SCO board," McBride said in a statement. "We also look forward to Darcy Mott's continued participation as a SCO board member. We believe that SCO will benefit from their long-term view of SCO's shareholder value."

SCO, facing delisting on the NASDAQ exchange, is currently involved in a lengthy lawsuit against IBM . The maker of Unix-based software products, SCO claims IBM violated its contract with the company by releasing its licensed Unix code to the Linux kernel development community.