Justice Department Sues Oracle for Fraud

Friday Jul 30th 2010 by Datamation.com Staff

The feds accuse the company of defrauding them of $1 billion on a software contract.

Wall Street Journal: The U.S. Justice Department has filed suit against Oracle, saying that the company defrauded the government to the tune of $1 billion on software purchases. At issue is a contract with the General Services Administration which ran from 1998 to 2006. Oracle told the feds that the 40 percent discount it was offering them was higher than those it offered to commercial customers, but in reality, the Justice Department alleges, the company offered other customers discounts of 40 to 70 percent.

"We take seriously allegations that a government contractor has dealt dishonestly with the United States," said Tony West, assistant attorney general for the Civil Division of the Department of Justice. "When contractors misrepresent their business practices to the government, taxpayers suffer."

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