Oracle Ends Kickback Case with $46m Settlement

Oracle has agreed to pay $46 million to settle claims it paid kickbacks to secure government contracts.

The US Department of Justice alleged Sun Microsystems - now part of Oracle - had knowingly paid kickbacks to systems integrators in return for recommendations that federal agencies purchased Sun products.

"Kickbacks, illegal inducements, misrepresentations during contract negotiations - these undermine the integrity of the government procurement process and unnecessarily cost taxpayers money," said Tony West, assistant attorney general for the Civil Division of the Department of Justice.

"As this case demonstrates, we will take action against those who abuse the public contracting process."

According to the Department of Justice, Sun made agreements with consults to pay fees each time the companies influenced a government agency to purchase a Sun product.

The $46 million settlement also resolved allegations brought under the False Claims Act that Sun's 1997 and 1999 contracts with the General Services Administration were wrongly priced because the firm provided "incomplete and inaccurate information" to contracting officers during negotiations.

The kickback resolution is part of a larger, ongoing investigation of government technology vendors that has already secured settlements with six other companies, including HP.

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