(RTTNews) - Oracle Corp. (ORCL: News ) has been accused of defrauding the U.S. government, the Justice Department revealed Thursday, with the government alleging that the software giant defraud the U.S. on a General Services Administration software contract that involved hundreds of millions of dollars in sales.
"We take seriously allegations that a government contractor has dealt dishonestly with the United States," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. "When contractors misrepresent their business practices to the government, taxpayers suffer."
Under the contract, which was in effect from 1998 to 2006, the GSA used disclosures from Oracle about its commercial sales practices in order to negotiate the minimum discounts for government agencies that bought Oracle software.
However, according to the complaint filed under the False Claims Act, Oracle misrepresented its true commercial sales practices, resulting in government customers receiving deals far inferior to those Oracle gave commercial customers.
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by RTT Staff Writer
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