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Qui Tam Action Against Software Giant Oracle Unsealed

On April 2, 2010, a False Claims Act qui tam action against Oracle Corp. and Oracle USA, Inc. was unsealed in the U.S. District Court for the Eastern District of Virginia.  Oracle entered into Multiple Award Schedule agreements with the GSA.  Under these agreements, the federal government is supposed to receive discounts “equal to or greater than the discount given to the firm’s most favored customer.”  According to the complaint filed by former Oracle employee Paul Frascella, Oracle routinely offered commercial customers deeper discounts and overcharged the government.  The complaint was filed under seal in May of 2007.

The False Claims Act permits an individual to file a qui tam action on behalf of the federal government and provides for an award of up to 30% of the government’s recovery.  The False Claims Act also prohibits an employer from retaliating against an individual who: 1) investigates an FCA action; 2) initiates an FCA action; 3) testifies for an FCA action; or 4) assists in an FCA action.

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