Story first appeared
in the Chicago Tribune.
NEW YORK (Reuters) -
An Oracle
Corp. investor sued the company and members of its board of directors on
Thursday for allegedly trying to "stonewall" a previously filed
whistleblower lawsuit that ultimately resulted in a $200 million settlement. A Minneapolis Whistleblower Lawyer has been
following the case for some time.
The lawsuit filed by an investor in Delaware state court said the defendants, including the Oracle CEO and other past and present members of the company's board of directors, breached their duty to shareholders by engaging in prolonged litigation over the whistleblower's allegations, which the defendants allegedly knew to be true.
The settlement in question was the result of a whistleblower lawsuit filed in 2007 by Oracle's former senior director of contract services, who accused the company of violating price-reduction clauses in federal contracts covering $775 million in goods, extending discounts to commercial clients without doing the same for government buyers.
The U.S. Department of Justice intervened in the lawsuit in 2010. In 2011, Oracle paid more than $200 million to settle the lawsuit, including interest and payments for the whistleblower, the largest of its kind under the federal False Claims Act.
The investor is seeking an unspecified amount in damages on behalf of shareholders. A spokesman for Oracle did not immediately return a request for comment Thursday.
The lawsuit filed by an investor in Delaware state court said the defendants, including the Oracle CEO and other past and present members of the company's board of directors, breached their duty to shareholders by engaging in prolonged litigation over the whistleblower's allegations, which the defendants allegedly knew to be true.
The settlement in question was the result of a whistleblower lawsuit filed in 2007 by Oracle's former senior director of contract services, who accused the company of violating price-reduction clauses in federal contracts covering $775 million in goods, extending discounts to commercial clients without doing the same for government buyers.
The U.S. Department of Justice intervened in the lawsuit in 2010. In 2011, Oracle paid more than $200 million to settle the lawsuit, including interest and payments for the whistleblower, the largest of its kind under the federal False Claims Act.
The investor is seeking an unspecified amount in damages on behalf of shareholders. A spokesman for Oracle did not immediately return a request for comment Thursday.
