"In an arrangement that legal eagle David Boies characterized as
'not usual but not unique,' his law firm today said it would accept
$1 million in cash and 400,000 shares in its client SCO, as part of
a partnership that aims to extract licensing fees from Linux
"As a result of the stock issuance and cash payout, SCO will
take an $8.9 million charge ($7.9 million of which is non-cash)
against fourth-quarter earnings. SCO will take an additional
non-cash charge of $8.74 million for the conversation related to
the issuance of stock. The money and shares are separate from a 20%
stake in SCO that Boies' firm would receive in the event of a
settlement or sale of the company.
"Boies' firm, Boies, Schiller and Flexner, has been representing
SCO in its multibillion-dollar lawsuit against IBM. SCO claims that
IBM is violating its patents by illegally distributing its 'System
V' Unix technology within Linux..."