SALEM, Ore. (AP) — Oregon Attorney General Ellen Rosenblum says she's filed a lawsuit against Oracle Corp. and several of its executives over the technology company's role in the state's troubled health insurance exchange.
The lawsuit filed Friday in Marion County Circuit Court seeks more than $200 million in damages. It alleges that Oracle officials made false statements and submitted false claims.
Oracle was the largest technology contractor working on Oregon's health insurance enrollment website, known as Cover Oregon. The website was never made available to the general public and became a political problem to Democratic Gov. John Kitzhaber, who is running for re-election.
Oracle filed its own lawsuit Aug. 8 for breach of contract over $23 million in disputed bills. The company blames Oregon for the website's failure, saying the state had incompetent and indecisive staff.
Gov. John Kitzhaber news relesae:
AG Finds Fraud, Deceit, and Corruption at Oracle; Governor Pledges Full Support to Protect Oregon Taxpayers
(Salem, OR) — Governor Kitzhaber today released the following statement in response to Attorney General Ellen Rosenblum and the Oregon Department of Justice filing suit against Oracle:
"When I asked the Attorney General in May to take legal action against Oracle, I thought it was important to hold the company accountable and recover taxpayers’ dollars for its flawed and incomplete work. We were all aware of Oracle’s poor performance and failure to deliver a working website for Cover Oregon.
Today, after months of investigation, the Attorney General’s findings go well beyond disappointing and incomplete work. The complaint filed contains serious new allegations of fraud, deceit, and corruption by Oracle. The details of the complaint, including the admissions of former Oracle employees, are appalling to me.
I fully support the Attorney General’s actions against Oracle. I will provide whatever is necessary to protect Oregon taxpayers and hold Oracle accountable."
Attorney general's news release:
Oregon Attorney General Rosenblum Sues Oracle
Salem--Oregon Attorney General Ellen Rosenblum today sued Oracle America, Inc., and a number of its high-level executives, for defrauding Oregonians in connection with Oracle's failure to provide a timely and functional health exchange website.
The civil complaint, filed in Marion County Circuit Court, demands recovery of the state's and Cover Oregon’s financial losses, as well as penalties for the damages caused by Oracle's broken promises, fraud, racketeering, and false claims for payment. It alleges that Oracle officials repeatedly made numerous false statements and that Oracle submitted false claims to the state and Cover Oregon for hundreds of millions of dollars based on those false statements. In addition, the 126 page complaint asserts that Oracle overcharged for poorly trained personnel who performed incompetently, hid from the state and Cover Oregon the true status of its abysmal progress, made promises it could not fulfill, repeatedly failed to meet critical deadlines, and failed to fix--but demanded payment for--shoddy work.
"Today's lawsuit clearly explains how egregiously Oracle has disserved Oregonians and our state agencies," said Attorney General Rosenblum. "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 added.
Click here for a copy of the complaint.