Oracle Sued By US Over Alleged Fraud

Oracle has been accused of overcharging for its software services by the US government.

The US Department of Justice has filed a lawsuit against Oracle Corp. and Oracle America Inc., claiming that the organisation defrauded the public.

Oracle is accused of overcharging the government on a software contract with the General Services Administration from 1998 to 2006, worth hundreds of millions of dollars.

According to news agency AFP, the Department of Justice did not specify the amount by which the government was overcharged by the company but added that Oracle will be dealt with strictly.

Speaking to the AFP, the Department of Justice said: “The suit contends that Oracle misrepresented its true commercial sales practises, ultimately leading to government customers receiving deals far inferior to those Oracle gave commercial customers.”

Originally the complaint was bought forward by Oracle's senior director of contract services, Paul Frascella, who filed a 'whistleblower' lawsuit against the company.

Any individual who believes that a company has made false claims can file a lawsuit on behalf of the government and is entitled to damages if the claim proves to be true.