Oracle Corp. and Oracle America Inc. (“Oracle”) agreed to pay $199.5 million to settle False Claims Act allegations against it.  According to the complaint, Oracle violated a 1998 contract which granted Oracle a contract to provide software licenses and technical support to multiple government entities through the General Services Administration (“GSA”).  Under the contract, Oracle was obligated to provide GSA with current, accurate, and complete information about its sales practices and discounts offered to other customers.  Oracle allegedly gave commercial customers discounts higher than those reported to GSA and failed to provide equivalent discounts to the government entities it supplied.

This case represents the largest False Claims Act settlement ever obtained by the General Services Administration and one of the top 30 largest False Claims Act settlements ever.  The whistleblower who brought this fraud to the government’s attention, a former Oracle employee, will receive a $40 million share of the settlement.

Since January 2009, the Department of Justice has recovered over $7.8 billion on behalf of taxpayers.

Read the press release, “Oracle Agrees to Pay U.S. $199.5 Million to Resolve False Claims Act Lawsuit”
Read the entire article, “Oracle to Pay $199.5 Million to Resolve False Claims Charge”