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US Sues Oracle Over Alleged Overcharging

June 16th, 2010 06:42 admin Leave a comment Go to comments

CWmike writes “Oracle is being sued by the US government for allegedly overcharging it by millions of dollars, according to documents on file in US District Court for the Eastern District of Virginia. The US General Services Administration (GSA)’s Schedules are supposed to provide discounts that are as good as or better than that given to the vendor’s most favored customers, the complaint states. However, Oracle employee Paul Frascella, who joins the government’s action, learned that Oracle was finding ways around the GSA restrictions in order to give commercial customers even deeper discounts, according to the complaints. In one alleged practice Oracle was said to be ‘selling to a reseller at a deep discount … and having the reseller sell the product to the end user at a price below the written maximum allowable discounts,’ the complaint states. Overall, Oracle’s actions cost US taxpayers ‘tens of millions of dollars,’ it adds.”

Source: US Sues Oracle Over Alleged Overcharging

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