Oracle's Settlement

Oracle to Pay $199.5 Million to End U.S. Overbilling Case

Business Week
October 6, 2011

Oracle Corporation is the second largest software maker in the world. In order to settle allegations that it overbilled the United States government for the last nine years, Oracle will pay almost two-hundred million dollars. The original lawsuit involved allegations that Oracle induced the General Services Administration to buy a billion dollars worth of software by offering discounts to favored commercial customers from 1998 to 2006.

Oracle announced the settlement today which is the largest payout ever obtained by the General Services Administration under the False Claims Act which permits individuals to sue on behalf of the government and share the recovery. The assistant attorney general of the Justice Department’s civil division said, “Companies that engage in unlawful or fraudulent practices to secure government business undermine the integrity of the procurement process and create an unfair advantage.”

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