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Justice Department Joins Fraud Lawsuit Against Oracle

Posted by Soulskill on from the just-tell-them-it-was-for-national-security dept.

suraj.sun writes with news that the US Department of Justice has joined a lawsuit alleging Oracle of overcharging the federal government for its software products. Quoting: "In a nutshell, the lawsuit argues that Oracle's government customers — a wide array of agencies, including the State Department, the Energy Department, and the Justice Department itself — got deals 'far inferior' to those the enterprise software giant gave to its commercial clients. The allegations stem from a software deal between Oracle and the federal General Services Administration that the Justice Department says involved 'hundreds of millions of dollars in sales' and that ran from 1998 to 2006. Under the contract, Oracle was required to inform the GSA when commercial discounts improved and to offer those same discounts to government buyers. Oracle misrepresented its true commercial sales practices and thus defrauded the US, the lawsuit contends.

5 of 100 comments (clear)

  1. Glad I don't use Oracle! by Anonymous Coward · · Score: 3, Funny

    It's crap like this that really makes me glad I stick with more reputable vendors like Sun.

  2. Re:The first rule on playing against the house... by Monkeedude1212 · · Score: 3, Insightful

    Problem is - who is the house?

    Most people would say the government, and then other people tote in and say the government is run by corporations.

  3. Re:Gov looking to save money? by edmudama · · Score: 5, Informative

    This isn't about the government paying more than a private entity.

    This is about the government having a contract with oracle guaranteeing a price match with other parties for the duration of the contract, which oracle tried to get around by using obscure pricing practices with new private entity business. Oracle agreed to match the prices, and then lied about what they were charging. That's fraud.

    --
    More data, damnit!
  4. Re:It may be a bit ambiguous.... by rolfwind · · Score: 3, Insightful

    The legal system, just like any profession, has it's own definitions and most-favored customer is one of them. If they didn't have accepted definitions, most contracts suits would go nowhere because the meaning of anything could be debated (ie depends on the meaning of the word "is" is)

    http://www.businessdictionary.com/tips/22/the-most-favored-customer-clause.html

  5. Re:The government can pay more by KarmaMB84 · · Score: 4, Insightful

    Until you sign a contract that says it's not true.