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Oracle Agrees To Settlement In Sun Case

February 1, 2011

American computer tech company Oracle has agreed to pay a $46 million settlement over allegations that Sun Microsystems — acquired by the tech company last year for $7.4 billion — submitted false claims to US agencies, according to the US Justice Department.

Sun allegedly paid monies to systems integrator companies in return for recommendations that government agencies purchase products from Sun Microsystems, The Justice Department said in a statement.

“Sun executed agreements with consulting companies that provided for the payment of fees each time the companies influenced a government agency to purchase a Sun product,” it said.

“Kickbacks, illegal inducements, misrepresentations during contract negotiations — these undermine the integrity of the government procurement process and unnecessarily cost taxpayers money,” assistant attorney general Tony West told AFP.

West said that the Justice Department “will take action against those who abuse the public contracting process,” as this case has demonstrated.

The Justice Department said it has sought for settlements of at least six other companies involved in the illegal practices with government tech vendors.

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