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Oracle to Pay $199.5 Million to Settle Overbilling Charges

October 6, 2011
New York Times

Oracle will pay more than $199.5 million to settle accusations that it overbilled the federal government for nine years.

The accord resolves a lawsuit claiming that Oracle induced the General Services Administration to buy $1.08 billion in software from 1998 to 2006 by falsely promising the same discounts offered to favored commercial customers. The Justice Department, which pursued the case after joining a whistle-blower lawsuit, and Oracle announced the settlement on Thursday.

The payout is the largest ever obtained by the General Services Administration under the False Claims Act, which lets citizens sue on behalf of the government and share in any recovery. A former Oracle employee, Paul Frascella, who filed the case in 2007, will get $40 million. To read the complete article click here.

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