WASHINGTON, Jan 31 (Reuters Legal) - 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 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
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
The allegations that Sun improperly paid kickbacks first
were first made by whisteblowers who filed a qui tam lawsuit in
Arkansas in 2004. The federal government later joined the suit
and added new claims.
Case: Rille et al v. Electronic Data et al, U.S. District
Court for the Eastern District of Arkansas, No. 4:04-cv-00986.
For the plaintiffs: Craig Johnson of Packard, Packard &
Johnson and others.
For the defendant: Clayton James, Phillip Metcalf and Stuart
Altman of Hogan Lovells; Michelle Kaemmerling and John Lile III
of Wright, Lindsey & Jennings.
(Reporting by James Vicini of Reuters; Additional reporting
by Jeff Roberts of Reuters Legal)