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Martin Murray

US Justice Department Joins Suit Against Oracle

By , About.com Guide   July 29, 2010

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It's a bad time for ERP vendors and consulting firms all round, SAP gets sued, Deloitte gets sued, now it's Oracle's turn, again. Back on June 17 I mentioned that Oracle was being sued by the US government for allegedly overcharging by millions of dollars based on the fact it failed to offer government customers the same discounts on its software that it offered commercial customers.

Now the US Justice Department has said that it is joining a fraud lawsuit against Oracle along with Paul Frascella, Oracle's senior director of contract services, who filed the original lawsuit in May 2007 under the False Claims Act. This allows whistleblowers to sue on the government's behalf and share in any damages recovered. The amount the Government believes that Oracle's actions allegedly could have cost U.S. taxpayers "tens of millions of dollars". Any share in that alleged amount is worth blowing the whistle for.

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