Oracle Whistleblower to Receive $17,730,000 Reward
By Katie Hauser
Published on October 13, 2006
Hicks alleged that PeopleSoft failed to disclose to the US government that the company provided commercial customers with a discount when they purchased numerous products at once. The Department of Justice also accused the company of issuing non-standard discounts that afforded some customers the ability to save as much as 74 percent on certain purchases.
By failing to inform the government of these discounts, PeopleSoft was able to overcharge government agencies for software as well as maintenance over the course of eight years.
When Oracle acquired PeopleSoft, they also inherited responsibility for any fraud perpetrated by the company. Consequently, Oracle will pay the $98.5 million settlement.
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