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U.S. Sues Oracle Over Alleged Overcharging

CWmike (1292728) writes | more than 4 years ago

Government 1

CWmike (1292728) writes "Oracle is being sued by the U.S. government for allegedly overcharging it by millions of dollars, according to documents on file in U.S. District Court for the Eastern District of Virginia. The U.S. 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 U.S. taxpayers 'tens of millions of dollars,' it adds."
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Very bad (1)

Coren22 (1625475) | more than 3 years ago | (#32594314)

This can be very bad for Oracle, they can lose the Government as a customer. I can't imagine why any company would want to break the GSA rules, would you screw your biggest customer?

Why is it I can't ever spell Oracle on the first try?

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