Our favourite combative company Oracle has paid the US government nearly $200 million to make a false claims case go away.
General Services Administration (GSA), which bought the case, said that the settlement is the largest it has ever squeezed out of a company.
The US General Services Administration will get $199.5 million plus interest from Oracle for “failing to meet their contractual obligations.”
Network World reported that the the settlement resolves allegations that, in contract negotiations and over the course of the contract’s administration.
The basis of the case is that Oracle was supposed to tell the GSA if it was offering discounts on its products and these had to match what it was supplying the government.
It made false statements to GSA about its sales practices and discounts in a bid to avoid the price reduction clause of the contract.
Because of these fraudulent dealings, the United States government ended up accepting lower discounts and ultimately paid far more than it should have for Oracle products.
It was all to do with a contract Oracle signed in 1998 to flog software through GSA’s Multiple Award Schedule (MAS) program. MAS allows government departments to fast track the sales
commonly used commercial goods and services.
The case was highlighted by whistleblower Paul Frascella, who will receive $40 million as his share of the recovery in the case, which is not to be sneezed at.