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: Cheaper wireless plans cut into AT&T 2Q profit

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

Nokia profits rise after sale of handset division

12 hours ago

(AP)—Telecommunications and wireless equipment maker Nokia Corp. saw its shares surge on Thursday after it reported higher profits and an improved earnings outlook in the wake of its sale to Microsoft of its troubled handset ...

Swiss drug maker Roche posts 7 percent profit drop

15 hours ago

(AP)—Swiss drugmaker Roche Holding AG on Thursday posted a net profit drop of 7 percent compared with a year ago, weighed down by a strong Swiss franc and charges from one of its diagnostic units.

Cheaper wireless plans cut into AT&T 2Q profit

Jul 23, 2014

(AP)—AT&T Inc. on Wednesday posted lower net income for the latest quarter due to cheaper cellphone plans it introduced as a response to aggressive pricing from smaller competitor T-Mobile US.

User comments : 0