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Oracle Settles with U.S. For $199.5 Million

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Oracle, the second largest software developer in the world, has agreed to pay $199.5 million to the General Services Administration over allegations the software giant overbilled the U.S. government for more than 9 years.

The settlement comes after former Oracle employee Paul Frascella filed a whistleblower lawsuit in 2007. The Department of Justice joined and then pursued the case finding that Oracle induced the GSA to purchase $1.08 billion in software from 1998 to 2006 by falsely promising the same discounts the company offered to its favorite commercial customers.

“Companies that engage in unlawful or fraudulent practices to secure government business undermine the integrity of the procurement process and create an unfair advantage,” Tony West, assistant attorney general of the Justice Department’s civil division, said in a statement, Business Week reported.

Oracle spokesperson Deborah Hellinger said in a statement that Oracle “denies that it did not scrupulously adhere to the pricing requirements of that contract.” Oracle has “strong controls in place to insure that the government agencies who purchased from the GSA schedule received fair pricing,” she said. “Oracle never committed any fraud whatsoever.”

 

breakinglawsuitnews.com disclaimer: This article: Oracle Settles with U.S. For $199.5 Million was posted on Friday, October 7th, 2011 at 7:29 pm at breakinglawsuitnews.com and is filed under Fraud Lawsuits.

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