DoJ Sues Oracle Alleging Software Contract Fraud
Updated · Aug 02, 2010
The U.S. Justice Department has filed a lawsuit against Oracle, accusing the database and business-applications-software titan of defrauding the federal government on a massive software contract worth hundreds of millions of dollars between 1998 and 2006.
According to this report on Datamation, in its lawsuit, the DoJ alleges Oracle misrepresented its commercial sales practices, causing government customers to receive deals that were inferior to those Oracle gave to its private-sector clients.
“Under the contract, according to the DoJ complaint, Oracle was required to update GSA when it offered new commercial discounts and extend the same pricing improvements to government customers.
“The lawsuit further claims that Oracle misrepresented its true commercial sales practices, resulting in government customers receiving deals ‘far inferior’ to those it gave to private-sector customers.”