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Oracle Faces Court For Overcharging US Government

Software maker Oracle is being sued by the US federal government for overcharging on services it provided.

According to a petition filed in the US District Court for the Eastern District of Virginia, Oracle has allegedly overcharged the US government by tens of millions of dollars.

The original complaint against Oracle was sparked by then-Oracle employee Paul Frascella in 2007, who alleged the company was hiding from government agencies the large discounts it offered to other customers.

According to the court documents, under the US General Services Administration (GSA) Multiple Award Scheme (MAS), Oracle was required to offer the government the best discount possible.

The petition by the US government against Oracle stated: “The whole idea of GSA schedule discounts is that the government, in the aggregate, is likely to be one of the largest purchasers of a company's products, and is entitled to take advantage of the discounts that its large buying power should command”.