Oracle Corp. has agreed to pay $98.5 million to settle charges that its PeopleSoft unit charged the government inflated prices for software. Oracle inherited PeopleSoft’s liability under the General Services Administration contract when it acquired the company.
The lawsuit alleged that in negotiations with the federal government PeopleSoft understated the discounts it provided to commercial customers under its multiple product discounting practice. Relying on the faulty disclosure, GSA negotiated discounts for federal customers that were much less favorable than those available to the company’s best commercial customers.
The whistleblower who originally brought the suit under the qui tam provisions of the False Claims Act will receive $17.7 million as his relator’s share.
A press release dated October 10, 2006 can be found at the Corporate Crime Reporter website.