The Justice Department said Thursday that binds to a fraud lawsuit against Oracle Corp. related to software contracts worth hundreds of millions of dollars.The agency said that Oracle does not offer customers the same discounts that the government in its software offering to commercial customers, as it was obliged to do. As a result, the suit alleges, Oracle took the government in a contract that ran from 1998 to 2006. Paul Frascella, Oracle senior director of contract services, filed the original lawsuit in May 2007 under the False Claims Act, which allows complainants to sue on behalf of government and participation in the damages recovered.
Oracle did not immediately return messages for comment.
“We take seriously the allegations that a government contractor has dealt dishonestly with the United States,” said Assistant Attorney General of Tony West in a statement.
“When contractors misrepresent their business practices to the government, taxpayers suffer.