Oracle Will Pay $200M to Settle Fraud Accusations

(CN) - The software giant Oracle agreed Thursday to pay the government nearly $200 million to resolve claims that it did not give the government the same discounts it gave commercial customers.

The Justice Department hailed the settlement as the largest False Claims Act deal obtained by the General Services Administration. It resolves claims that Oracle did not give the administration "current, accurate and complete information about its sales practices and discounts" under its 1998 government contract, according to a statement.

The government also said Oracle did not disclose discounts the company gave to its commercial customers, and that it failed to pass the same discounts on to government customers.

As a result, the government "paid far more than it should have for Oracle products," the Justice Department said.

The settlement resolves a 2007 whistle-blower lawsuit by former Oracle employee Paul Frascella, who will be awarded $40 million of the amount recovered.

"It's more important now than ever before to make sure that taxpayer dollars are not wasted on higher prices," General Services Administration Inspector General Brian Miller said in a statement. "We will not let contractors victimize the taxpayers by hiding their best prices."

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