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Oregon Sues Oracle Over Cover Oregon Debacle

OPB | Aug. 22, 2014 11:52 a.m. | Updated: Aug. 22, 2014 3:49 p.m. | Portland

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Oregon’s attorney general filed suit Friday against the software giant Oracle and some of its top executives, for allegedly defrauding the state.

The suit demands reimbursement and penalties for damages caused by Oracle’s “broken promises, fraud, racketeering, and false claims.”

Oregon had already signaled its intent to sue Oracle, when the company acted first, suing the state earlier this month.

Kristina Edmunson, the spokeswoman for the Oregon Department of Justice said Oracle overcharged for poorly-trained personnel who performed incompetently, and hid the true status of its abysmal progress from the state.

She says the company also made promises it could not fulfill, repeatedly failed to meet critical deadlines, and demanded payment for shoddy work.

“Over the course of the Department of Justice’s investigation, it became abundantly clear to the attorney general and to the Department of Justice that Oracle repeatedly lied and defrauded the state,” she said.

Oracle did not immediately return calls for comment, but later issued this statement:

“The lawsuit filed today against Oracle by the Attorney General of Oregon is a desperate attempt to deflect blame from Cover Oregon and the Governor for their failures to manage a complex IT project. The complaint is a fictional account of the Oregon Healthcare Project.  Oracle is confident that the truth - and Oracle - will prevail in this action and the one filed by Oracle against Cover Oregon two weeks ago in federal court.”

In its suit for breach of contract, Oracle accused Gov. John Kitzhaber of attempting to systematically vilify the company in the media.

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