January 31, 2011 / 8:52 PM / 9 years ago

Oracle to pay $46 million in false claims case

WASHINGTON (Reuters) - Oracle Corp agreed to pay $46 million to settle claims that Sun Microsystems Inc, which it bought last year, submitted false claims to federal government agencies and paid kickbacks, the U.S. Justice Department said on Monday.

It said the settlement resolved allegations that Sun knowingly paid kickbacks to systems integrator companies in return for recommendations that federal agencies buy Sun’s products.

The department said the allegations were part of a larger, ongoing investigation of government technology vendors that has resulted in settlements with six other companies.

The settlement resolves claims that Sun’s contracts in the late 1990s with the General Services Administration were defectively priced because it provided incomplete, inaccurate information during contract negotiations.

The department said the U.S. Postal Service later relied on the defective pricing information during contract negotiations with Sun.

The allegations that Sun improperly paid kickbacks first were made in a whistleblower lawsuit filed in federal court in Arkansas in 2004, the department said.

Reporting by James Vicini. Editing by Robert MacMillan

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