Oracle To Pay $199.5M To Settle U.S. False Claims Case

Business as usual?

Moderators: b1o, jkerr82508

User avatar
dedanna1029
Sound-Berserk
Posts: 8483
Joined: 14 Mar 2010, 20:29
Contact:

Oracle To Pay $199.5M To Settle U.S. False Claims Case

Postby dedanna1029 » 09 Oct 2011, 21:56

WSJ at http://online.wsj.com/article/BT-CO-201 ... 12642.html wrote:
By Brent Kendall
Of DOW JONES NEWSWIRES


WASHINGTON (Dow Jones)--Oracle Corp. (ORCL) will pay $199.5 million to settle U.S. false-claims allegations that it defrauded the federal government on a software contract that involved hundreds of millions of dollars in sales, the Justice Department announced Thursday.

The department had alleged that Oracle misrepresented its commercial sales practices, causing government customers to receive deals that were inferior to those Oracle gave its commercial customers. The department also alleged that Oracle went out of its way to hide those deals from the government.

A former Oracle employee, Paul Frascella, originally raised the allegations in a suit against the company under the False Claims Act, which provides financial rewards to private litigants who report fraud against the government. That suit was filed in 2007 but kept under seal until 2010, when the government said it would join the litigation.

The case has its origins in a contract Oracle signed in 1998 with the U.S. General Services Administration, which negotiates contracts for the government.

Oracle vigorously denied the allegations, saying in a statement, "Oracle never committed any fraud whatsoever."

The company said it settled "to avoid the distraction and high cost of litigating this case."

-By Brent Kendall, Dow Jones Newswires; 202-862-9222; [email protected]
I'd rather be a free person who fears terrorists, than be a "safe" person who fears the government.
No gods, no masters.
"A druid is by nature anarchistic, that is, submits to no one."
http://uk.druidcollege.org/faqs.html

User avatar
viking60
Über-Berserk
Posts: 9280
Joined: 14 Mar 2010, 16:34

Re: Oracle To Pay $199.5M To Settle U.S. False Claims Case

Postby viking60 » 09 Oct 2011, 23:08

Sounds like someone made a bad deal and regretted it. Getting 119.4 M back probably made it a good deal. I cannot see how private companies making a better deal is illegal.
But if the gap gets to big someone is going to feel like idiots. I guess the authorities just used their market force here. A huge customer is always right......
Manjaro 64bit on the main box -Intel(R) Core(TM) i7 CPU 920 @ 2.67GHz and nVidia Corporation GT200b [GeForce GTX 275] (rev a1. + Centos on the server - Arch on the laptop.
"There are no stupid questions - Only stupid answers!"

User avatar
R_Head
Berserk
Posts: 2566
Joined: 17 Mar 2010, 15:40

Re: Oracle To Pay $199.5M To Settle U.S. False Claims Case

Postby R_Head » 10 Oct 2011, 18:18

Well, MS does it all the time and nobody bitches about it. :T

User avatar
viking60
Über-Berserk
Posts: 9280
Joined: 14 Mar 2010, 16:34

Re: Oracle To Pay $199.5M To Settle U.S. False Claims Case

Postby viking60 » 10 Oct 2011, 18:38

Yes that is the inherited monopoly arrogance.
Would you believe they actually threatened The US government that they would not cooperate with them. That was a big mistake, but they know very well that most systems have their OS as an important factor.
Faced with this reaction every sensible person on the planet will start looking for alternatives. So MS must have been pretty confident that there are none.
I don't think they are that confident anymore.
I still think this program is illegal, and way beyond what Oracle has done here.
Manjaro 64bit on the main box -Intel(R) Core(TM) i7 CPU 920 @ 2.67GHz and nVidia Corporation GT200b [GeForce GTX 275] (rev a1. + Centos on the server - Arch on the laptop.
"There are no stupid questions - Only stupid answers!"


Return to “Business”