Oregon AG files lawsuit against Oracle

By Bryan Cohen | Aug 25, 2014

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SALEM, Ore. (Legal Newsline) - Oregon Attorney General Ellen Rosenblum filed a lawsuit on Friday against a hardware and software engineering company and multiple executives for allegedly defrauding Oregonians by failing to provide a functional health exchange website.

Oracle America Inc. allegedly made multiple false statements to the state and submitted hundreds of millions of dollars worth of false claims to the state and Cover Oregon, the state's health insurance marketplace. Oracle allegedly overcharged for poorly trained personnel, hid the true status of its poor progress from the state, made promises it could not fulfill, failed to fix issues but demanded payment anyway, and repeatedly failed to meet important deadlines.

"Today's lawsuit clearly explains how egregiously Oracle has disserved Oregonians and our state agencies," Rosenblum said. "Over the course of our investigation, it became abundantly clear that Oracle repeatedly lied and defrauded the state. Through this legal action, we intend to make our state whole, and make sure taxpayers aren't left holding the bag."

Rosenblum filed the lawsuit in Marion County Circuit Court. The suit seeks recovery of the state's financial losses, as well as losses endured by Cover Oregon. Rosenblum's lawsuit also seeks penalties for damages caused by Oracle's alleged broken promises, racketeering, fraud and false claims for payment.

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