Oracle fined $200 million for overcharging US govt

October 7, 2011
Business software and hardware giant Oracle was fined nearly $200 million dollars for overcharging the US government, the Justice Department announced Thursday.

Business software and hardware giant Oracle was fined nearly $200 million dollars for overcharging the US government, the Justice Department announced Thursday.

The department said Oracle had agreed to pay the fine for failing to meet contractual obligations in the sale of and technical support to the government's huge General Services Administration under a 1998 contract.

"The ($199.5 million) settlement resolves allegations that, in and over the course of the contract's administration, Oracle knowingly failed to meet its contractual obligations to provide GSA with current, accurate and complete information about its commercial sales practices, including discounts offered to other customers," the Justice Department said in a statement.

It added that Oracle "knowingly made false statements to GSA about its sales practices and discounts."

"Because of these allegedly fraudulent dealings, the United States alleges that it accepted lower discounts and ultimately paid far more than it should have for Oracle products," it said.

GSA inspector general Brian Miller said it was "more important now than ever before to make sure that are not wasted on higher prices."

"We will not let contractors victimize the taxpayers by hiding their best prices."

The settlement comes out of a 2007 lawsuit filed by an Oracle employee, Paul Frascella, that the company was defrauding the government on its contracts.

As an officially recognized whistleblower, Frascella will get $40 million from the settlement, the said.

Oracle had no immediate comment.

Explore further: US suing Oracle alleging software contracts fraud

Related Stories

HP reaches settlement with DOJ in kickbacks case

August 3, 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 ...

Oracle to pay $46 mln to settle Sun case

January 31, 2011

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 buys data storage firm Pillar

June 30, 2011

US business software giant Oracle has reached a deal to buy Pillar Data Systems, a data storage start-up majority owned by Oracle founder and principal owner Larry Ellison.

Recommended for you

Computer model demonstrates how human spleen filters blood

June 27, 2016

Researchers, led by Carnegie Mellon University President Subra Suresh and MIT Principal Research Scientist Ming Dao, have created a new computer model that shows how tiny slits in the spleen prevent old, diseased or misshapen ...

Mapping coal's decline and the renewables' rise

June 23, 2016

Even as coal-fired power plants across the U.S. are shutting down in response to new environmental regulations and policy mandates, defenders of the emissions-heavy fuel still have cost on their side. Coal, after all, is ...

Electric racing car breaks world record

June 23, 2016

The Formula Student team at the Academic Motorsports Club Zurich (AMZ) accomplished its mission today: the grimsel electric racing car accelerated from 0 to 100 km/h in just 1.513 seconds and set a new world record. It reached ...

Flower power—photovoltaic cells replicate rose petals

June 24, 2016

With a surface resembling that of plants, solar cells improve light-harvesting and thus generate more power. Scientists of KIT (Karlsruhe Institute of Technology) reproduced the epidermal cells of rose petals that have particularly ...

1 comment

Adjust slider to filter visible comments by rank

Display comments: newest first

rexalfielee
not rated yet Oct 08, 2011
It's not a lot unfortunately for a company that deserves to have its corporate butt kicked repeatedly.

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.