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LINDON, Utah (Dow Jones/AP) -- SCO Group Inc., which is in the midst of a legal battle over Linux software, says it will move ahead with a plan to pay the law firm of David Boies $1 million cash and 400,000 stock shares.
The agreement is valued at $6.46 million, based on the stock's Monday closing price of $13.65 on the Nasdaq Stock Market.
In afternoon trading Tuesday, the shares were up 60 cents, or 4.4 percent, at $14.25.
The in a filing last week with the Securities and Exchange Commission, Lindon-based SCO said it will also pay Boies Schiller & Flexner 20 percent of the proceeds from a settlement with International Business Machines Corp.; 20 percent of any SCO stock issued during the lawsuit; or 20 percent of a sale of the company.
In the suit, SCO claims damages of $3 billion from alleged theft of trade secrets. It says IBM took SCO's Unix software code and inserted it into free Linux software. IBM, the Armonk, N.Y., computer giant, has denied the claims.
Boies prosecuted the government antitrust case against Microsoft Corp. and battled over Florida ballots for Al Gore in the 2000 presidential election.
SCO said the cash and stock payment will lead it to book a charge of $8.96 million for the fiscal fourth quarter ended Oct. 31.
(Copyright 2003 by The Associated Press. All Rights Reserved.)
