This looks very bad for oracle. Is this a common occurrence or is this a harbinger of a scorched earth approach to technology rollouts? Does this portend similar things to what happened to the banks? Will Oracle and companies like it start being sued under racketeering laws for complex technological solutions that may not work to the customer’s satisfaction? Of course there are always customer disputes but I haven’t heard of anything this high profile before.
Oregon Attorney General Rosenblum Sues Oracle
August 22, 2014
Salem–Oregon Attorney General Ellen Rosenblum today sued Oracle America, Inc., and a number of its high-level executives, for defrauding Oregonians in connection with Oracle’s failure to provide a timely and functional health exchange website.
The civil complaint, filed in Marion County Circuit Court, demands recovery of the state’s and Cover Oregon’s financial losses, as well as penalties for the damages caused by Oracle’s broken promises, fraud, racketeering, and false claims for payment. It alleges that Oracle officials repeatedly made numerous false statements and that Oracle submitted false claims to the state and Cover Oregon for hundreds of millions of dollars based on those false statements. In addition, the 126 page complaint asserts that Oracle overcharged for poorly trained personnel who performed incompetently, hid from the state and Cover Oregon the true status of its abysmal progress, made promises it could not fulfill, repeatedly failed to meet critical deadlines, and failed to fix–but demanded payment for–shoddy work.
via Oregon Department of Justice – Oregon Attorney General Rosenblum Sues Oracle.