Oracle Agrees to Pay U.S. Fine

The database maker agrees to pay $98.5 million to settle claims that it overcharged on a contract.
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Software maker

Oracle

(ORCL) - Get Report

said that it would pay $98.5 million to settle a lawsuit alleging that it overcharged the U.S. government on a contract negotiation, according to the Justice Department.

According to published reports, the Tuesday settlement brings resolution to charges that

PeopleSoft

made pricing disclosures that were inaccurate, incomplete and not up to date, related to the sale of software licenses and other services contracted with the General Services Administration between 1997 and 2005, the Justice Department said.

Oracle, which acquired PeopleSoft in June 2005, became liable under the contract.

"Because PeopleSoft did not give GSA accurate pricing information, it negotiated higher prices for its products and services than it would have obtained if GSA had known the truth," said U.S. Attorney Rod Rosenstein of the District of Maryland in a statement.

The payment is the largest ever obtained by the U.S. in a civil settlement under the False Claims Act involving the GSA's MAS program.

Shares of Oracle rose a nickel after hours $18.79.