The Justice Department says Oracle Corp. and Oracle America Inc. have agreed to pay $199.5 million plus interest to settle allegations that the companies failed to tell the General Services Administration about discounts and other commercial sales practices involving other customers.
The amount is the largest False Claims Act settlement in a GSA case. A 1998 contract with Oracle was for the sale of software licenses and technical support to government agencies. Under the terms of the contract, Oracle was required to disclose commercial pricing policies and practices.
The government said that because of Oracle's allegedly fraudulent dealings, the government accepted lower discounts and ultimately paid far more than it should have for Oracle products.