Oracle to pay $199.5 mln to resolve false claims case

Oracle Corp has agreed to pay $199.5 million plus interest to settle allegations that the software giant failed to give promised discounts to the federal government, the U.S. Justice Department said on Thursday. Has to pay $199.5 million The settlement over false claims allegations is the largest involving the General Services Administration, which handles procurement for the federal government. “Resolutions like this one - the largest GSA false claims settlement in history - demonstrate our commitment to ensure taxpayers are not overpaying for the products and services they receive,” Tony West, Head of the Justice Department’s Civil Division, said in a statement. Nevertheless, company spokeswoman Deborah Hellinger said “Oracle has therefore decided to avoid the distraction and high cost of litigating this case by settling.” The settlement represents about 11 percent of the $1.84 billion in net income Oracle had in the quarter that ended Aug. 31.