Oracle pays GSA $200 million settlement


Oracle Corp. and Oracle America Inc. have agreed to pay the General Services Administration $199.5 million plus interest for failing to meet their contractual obligations, the U.S. Department of Justice announced last week.

Authorities said the Redwood City-based technology company's payment is the largest False Claims Act settlement ever won by the GSA.

In 1998, Oracle signed a contract with the GSA to sell software licenses and tech support to government organizations through a GSA program and under that contract, agreed to fully disclose their commercial pricing practices.

The settlement stemmed from allegations that Oracle knowingly failed to inform the GSA about its commercial sales practices and lied to the federal agency about sales practices and discounts offered to other customers, officials said.

"Companies that engage in unlawful or fraudulent practices to secure government business undermine the integrity of the procurement process and create an unfair advantage against the majority of companies that are playing by the rules," said Tony West, assistant attorney general for the Department of Justice's Civil Division.

West said the settlement with Oracle underscores the Department of Justice's "commitment to ensure taxpayers are not overpaying for the products and services they receive."

The resolution marks the end of coordinated efforts by the Department of Justice, the GSA and the U.S. Attorney's Office for the Eastern District of Virginia.

We can't do it without you.
Support local journalism.


Sorry, but further commenting on this topic has been closed.

Don't be the last to know

Get the latest headlines sent straight to your inbox every day.

Downtown Palo Alto gets new Vietnamese eatery
By Elena Kadvany | 2 comments | 4,382 views

More Stupid Plastic Food Things
By Laura Stec | 13 comments | 2,314 views

Operation Varsity Blues
By John Raftrey and Lori McCormick | 8 comments | 1,651 views

Couples: Write a Personal Ad . . . to Your Partner . . .
By Chandrama Anderson | 2 comments | 1,569 views

El Camino Is Rapidly Becoming The Bright New Face of Menlo Park
By Dana Hendrickson | 8 comments | 1,498 views