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asifyoucare (302582) writes "One of the more interesting aspects in the SCO v IBM case is the investment by Baystar in SCO. Baystar's Larry Goldfarb has long alleged that he was encouraged by Microsoft to invest in SCO, thus giving SCO the cash to continue their apparently meritless suit. He claims that Microsoft said they would "backstop" the investment, and presumably that word means some sort of guarantee of the investment.
It has long been alleged that Ex-Microsoft employee Richard Emerson promoted the SCO investment to Baystar, but in his latest declaration Goldfarb also names Kenneth Lustig and Tivanka Ellawala. So, if Goldfarb is to believed, and there seems to be no reason to doubt him, the encouragement to invest in SCO was not the work of a lone misguided employee. Rather, it was done with actual authority from Microsoft.
It is ironic that this declaration was in response to claims of tortious interference by IBM in SCO's business. IANAL (yet) but it looks like the beginning of similar suit that could be brought by IBM against Microsoft.