Brief: Oracle pays $8M to settle suit over training charges

The case revolves around its Oracle University program

By Joris Evers

May 16, 2005 12:00 PM ET

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IDG News Service - Oracle Corp. has paid $8 million to settle charges that from 1997 through 2003 it fraudulently billed the federal government for training through the company's Oracle University program.
The charges arose from a whistle-blower lawsuit brought by a former vice president at Oracle University, according to a statement Friday by the U.S. attorney's office for the District of Massachusetts. Oracle University is the unit of the database vendor that offers customer training programs.
The case was under seal until late Thursday because it involved a whistle-blower suit.
Oracle was accused of collecting fees before providing training, forfeiting to itself millions of dollars in advance payments for training services that weren't used within a year, and failing to comply with federal travel regulations in billing for travel and expenses, according to the statement. After the investigation began, Oracle stopped the practices.
As a result of the settlement, the whistle-blower in the case will receive $1.58 million of the $8 million total settlement amount, according to the statement.

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