US Justice Dept to Sue Oracle Over Contract Frauds

The United States Justice Department on Thursday said that that it will file another lawsuit against computer giant Oracle Corp. following alleged fraud and overcharging in the use of its software.

The United States Justice Department on Thursday said that that it will file another lawsuit against computer giant Oracle Corp. following alleged fraud and overcharging in the use of its software.

In a statement, the DOJ said that it will join the earlier lawsuit filed against Oracle after government investigation showed that software manufacturer committed fraud in its contracts worth hundreds of millions of dollars.

The Justice Department added that the software maker failed to offer government agencies and its employees the same discounts it offers to commercial clients. The DOJ stressed that the law requires the discount offers from such companies.

Based on its investigation, the agency said that Oracle has overcharged the US federal government millions of dollars in its 1998 to 2006 contract.

The case stemmed from a lawsuit filed by Oracle senior director of contract service Paul Fracella in May 2007, under the False Claims Act.

The law allows whistleblowers to file charges against the companies on behalf of the US government, in exchange for shares in damages that will be recovered.

As of press time, Oracle spokespersons remained unavailable or refused to comment on the issue.

Meanwhile, Assistant Attorney General Tony West, in a statement, said that the government is “taking seriously allegations that a government contractor has dealt dishonestly with the United States.”

He added that misrepresentations by such contractors with their business practices to the government may result to further suffering on the side of the taxpayers.

    Comment

    (All the above fields are required.)