Justice sues Oracle, alleging it defrauded federal government
The Justice Department has filed a lawsuit against Silicon Valley database software giant Oracle, alleging that the company defrauded the federal government on a contract involving hundreds of millions of dollars.
In a news release Thursday, Justice said Oracle misrepresented how much it was charging commercial customers and gave the General Services Administration inferior deals between 1998 and 2006 compared with those offered for private-sector sales contracts. Spokeswomen at Oracle didn't immediately respond to requests for comment by e-mail and phone.
"We take seriously allegations that a government contractor has dealt dishonestly with the United States," said Tony West, assistant attorney general for the civil division of Justice. "When contractors misrepresent their business practices to the government, taxpayers suffer."
The alleged sales fraud was brought to light by a whistleblower named Paul Frascella, a senior director of contract services at Oracle. Under the False Claims Act, Frascella could get a portion of any damages recovered in the suit. Justice didn't specify how much it was seeking in damages.
July 29, 2010; 4:49 PM ET
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