Oracle Sued by Justice Department
Under the False Claims Act, U.S. DoJ alleges that Oracle defrauded the government on a software contract
Information Management Online, July 30, 2010
July 30, 2010 – The U.S. Justice Department said on Thursday that it has filed a complaint against Oracle, accusing the company of defrauding the federal government on a software contract.
The DoJ brought the complaint under the False Claims Act. In its lawsuit, the government alleges Oracle misrepresented its commercial sales practices in regards to a General Services Administration software contract, causing government customers to receive deals that were inferior to those Oracle gave to its private-sector clients. The government says the GSA contract was worth hundreds of millions of dollars between 1998 and 2006.
Oracle was not immediately available to comment on the lawsuit.
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"The False Claims Act allows private citizens with knowledge of fraud to file whistleblower suits on behalf of the United States and share in any recovery," DoJ officials said in a statement. "If the United States intervenes in the action and proves that a defendant has knowingly submitted false claims, it is entitled to recover three times the damage that resulted and a penalty of $5,500 to $11,000 per claim."
This case was investigated as part of a National Procurement Fraud Initiative.
Valerie Valentine is senior editor for Information Management.
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