The Justice Department has joined a whistle-blower in accusing business software giant Oracle Inc. of defrauding the federal government by overcharging for software, reports the New York Times. In a civil suit filed in federal court on July 29, the Justice Department said that Oracle had failed to give the government the same discounts on software that it provided to commercial customers. A contract in place with Oracle from 1998 to 2006 required that Oracle notify the government of fluctuations in the price of its products and to match discounts made to commercial clients, according to the complaint. The software in question was valued at hundreds of millions of dollars, the Justice Department said. Oracle declined to comment. Paul Frascella, a former Oracle employee, acted as a whistle-blower in May 2007 by lodging his own complaint against Oracle on similar grounds. In April, the government provided notice that it would look into the matter. Now it has joined Frascella’s complaint. According to the complaint, Oracle sold $1.08 billion of software under the contract in question to a wide range of government agencies, including the Defense, Education, and Justice Departments and the military…

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About the Author:

Denny Carter

Dennis has covered higher education technology since April 2008, having interviewed some of the most recognized IT pros in U.S. colleges and universities. He is always updating eCampus News with the latest in pressing ed-tech issues, such as the growing i


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