Judge Rules Against SCO; Stock Drops

Both in the courts and in the stock market, SCO is taking a beating. (Linux-Watch)

SCO took big hits this week—both in the courts, and in the stock market.

Regardless of what SCOs management decides to do, the companys stockholders seem to have finally had enough of the troubled company.

First, on Nov. 29, U.S. District Court Judge Dale Kimball affirmed Magistrate Judge Brooke Wellss June 28, 2006 Order. In that order, Wells dismissed 188 of SCOs claimed 294 examples of IBM contributing Unix code to Linux.

At the time, Wells wrote, "Certainly if an individual was stopped and accused of shoplifting after walking out of Neiman Marcus, they would expect to be eventually told what they allegedly stole.

"It would be absurd for an officer to tell the accused that you know what you stole, Im not telling. Or, to simply hand the accused individual a catalog of Neiman Marcus entire inventory and say its in there somewhere, you figure it out."

/zimages/5/28571.gifClick here to read more about the state of the IBM-SCO conflict.

Kimball wasnt half so colorful, but he did write, "The court finds that, even under a de novo [an in-depth review that cant be appealed] standard of review, the Magistrate Judges June 28, 2006 Order is correct.

"The court finds that SCO failed to comply with the courts previous discovery-related Orders and Rule 26(e), that SCO acted willfully, that SCOs conduct has resulted in prejudice to IBM, and that this result—the inability of SCO to use the evidence at issue to prove its claims—should come as no surprise to SCO.

In addition, the court finds that neither particularized findings on an item-by-item basis nor an evidentiary hearing is required to make these determinations. The court, therefore, affirms and adopts the Magistrate Judges June 28, 2006 Order in its entirety."

/zimages/5/28571.gifRead the full story on Linux-Watch: SCO Takes Body Blows, Stock Tanks

/zimages/5/28571.gifCheck out eWEEK.coms for the latest open-source news, reviews and analysis.