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Fun fact (tangential): In 2014, the state of Oregon filed a $3 billion lawsuit for fraud against Oracle Corporation and six Oracle employees personally, in the
by dctoedt 3y ago
Fun fact (tangential): In 2014, the state of Oregon filed a $3 billion lawsuit for fraud against Oracle Corporation and six Oracle employees personally, in the wake of the allegedly-failed attempt to develop Oregon's health-insurance exchange under the Affordable Care Act a.k.a. Obamacare. [0]
• The six employees sued included five executives at the vice-president level and higher, as well as a technical manager who was accused of having conducted a fraudulent demo of the new system's capabilities.
• The state sought "only" some $45 million from the technical manager, as well as amounts ranging from $87 million to $267 million from various Oracle executives.
(It seems likely that the state sued the Oracle people personally to "encourage" them to cooperate in the discovery process in which the state presumably sought documents, etc., from Oracle. This happens a lot on the criminal-law side of the docket, where it's known as getting defendants to "flip" and testify against their co-defendants. The past couple of days have seen examples in the Georgia RICO case against former president Trump.)
High-profile lawsuits like this typically settle before trial. Not least, this is because the elected officials who bring or authorize the lawsuits would prefer to trumpet a "victory" instead of rolling the dice with the court.
And sure enough, Oregon's lawsuit against Oracle was settled — Oracle agreed to pay Oregon $25 million in cash and to provide the state with another $75 million in technology. [1]
(Copied largely verbatim from my course materials.)
[0] https://web.archive.org/web/20141014060142/https://www.oregon.gov/docs/082214_filing.pdf https://web.archive.org/web/20141014060142/https://www.orego...
[1] https://www.oregonlive.com/politics/2016/09/post_183.html https://www.oregonlive.com/politics/2016/09/post_183.html
- deepsun 3y ago> provide the state with another $75 million in technology. ... securing their future income. If I bought such a bad burrito from a vendor that I had to sue them, I'd probably stop buying from that vendor.
- dctoedt 3y agoSometimes in such matters, the customer is using the lawsuit as leverage to renegotiate the price after the fact. (I don't know whether that was a motivation in Oregon v. Oracle.)