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Oracle Settles U.S. Agency Overbilling Case for $199.5 Million

October 7, 2011
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Bloomberg: Oracle has settled a lawsuit brought by the U.S. General Services Administration (GSA), which alleged that the company had overbilled federal agencies for nine years. Oracle had promised to give the GSA the same pricing it gave to its most favored commercial customers, but it did not do so.

The lawsuit was originally begun by former Oracle employee Paul Frascella. Under the terms of the False Claims Act, Frascella will receive $40 million for blowing the whistle on the fraud.

In 2006, Oracle settled a similar case with the GSA for $98.5 million.

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