Oracle to pay $46 mln to settle Sun case

Jan 31, 2011
The Oracle logo is displayed on the company's world headquarters in 2009 in California. Oracle has agreed to pay $46 million to settle claims that Sun Microsystems, which it acquired last year, submitted false claims to US agencies, the US Justice Department said on Monday.

Oracle has agreed to pay $46 million to settle claims that Sun Microsystems, which it acquired last year, submitted false claims to US agencies, the US Justice Department said on Monday.

The settlement stems from allegations that Sun paid kickbacks to systems integrator companies in return for recommendations that US government agencies purchase Sun products, the department said in a statement.

"Sun executed agreements with consulting companies that provided for the payment of fees each time the companies influenced a government agency to purchase a Sun product," it said.

"Kickbacks, illegal inducements, misrepresentations during contract negotiations -- these undermine the integrity of the government procurement process and unnecessarily cost money," assistant attorney general Tony West said.

"As this case demonstrates, we will take action against those who abuse the public contracting process," he said.

The Justice Department said its ongoing investigation of government technology vendors has resulted in settlements with six other companies.

acquired Sun, a one-time star and developer of the popular Java programming language, in a $7.4 billion deal last year.

Explore further: Hackerspaces used to turn ideas turn into reality

add to favorites email to friend print save as pdf

Related Stories

HP reaches settlement with DOJ in kickbacks case

Aug 03, 2010

(AP) -- Hewlett-Packard Co. said Monday that it has agreed in principle to settle a lawsuit by the Department of Justice, which alleged that HP and other technology companies paid kickbacks to Accenture PLC in exchange for ...

Sun Micro: We may have broken US anti-bribery law

May 08, 2009

(AP) -- Sun Microsystems Inc. may have broken anti-bribery laws with its actions in an unspecified location outside the United States, a revelation that would-be acquirer Oracle Corp. knew about before inking ...

Recommended for you

Alibaba's revenue growth surges in latest quarter

34 minutes ago

Alibaba's quarterly revenue growth is surging again, a development that should help the Chinese e-commerce company sell its shares in what could become the technology industry's most lucrative IPO.

Hackerspaces used to turn ideas turn into reality

11 hours ago

At HeatSync Labs, the tables are littered with computer chips, pens, pads and tools while the room is abuzz with the chatter of would-be inventors hoping to change the world—or just make cool things. They are part of a ...

China Telecom profit rises as mobile data grows

12 hours ago

China Telecom Ltd., one of the country's three main state-owned carriers, said Wednesday its profit rose 11.8 percent in the first half of the year as its Internet and mobile data businesses grew.

Snapchat valued at $10 bln

12 hours ago

US media on Tuesday reported that Snapchat was valued at $10 billion based on funding pumped into the startup by a powerhouse Silicon Valley venture capital firm.

User comments : 0