(OREGON) – On Friday, the Oracle Corporation (NYSE:ORCL) sued Cover Oregon on the issue of health insurance exchange, saying that the state officials are using the Oracle’s software inspite of unpaid USD 23 million. Breach of contract case, in the federal court of Portland, was filled against the state of Oregon.
The company demands USD 23 million plus interest payment as well as the fulfillment of other unspecified damages. According to Oracle, the project was victimized by a bureaucratic dispute between two state agencies.
Along with documents exhibiting the proof, the case was filed in the US District Court, District of Oregon (Portland) as Oracle America Inc. v. Oregon Health Insurance Exchange Corp., 14-cv-01279. These documents contain the agreement, Oracle License and Services Agreement Number: US-TERM-GMA-14786492-14-MAR-2013, with ordering document numbers: US-1070867.-OD-11-MAR-2014, US-1135583-OD.14-APR-2014 and US-1219851-OD-16-MAY-2014.
Doug Stanley, contract manager of Oracle, and Triz delaRosa, billing contact for this contract, were the main contacts. Joyce Prato, director of Oracle, signed these documents after Interim executive director of Oregon Health Insurance Exchange Corporation, Bruce Goldberg, and other officials signed.
On the contrary, the government officials have denied all accusations, claiming that the insurance scheme was never launched to the general people. However, Oracle continues saying that that bad management of the state was responsible for not launching the scheme, and it has nothing to do with the company’s products.
The Governor of Oregon, John Kitzhaber, responded by firing several state officials and blamed Oracle’s work to be below average. He has called the state to make a counter-case.
Melissa Navas, a spokesperson of Kitzhaber, stated that, “The governor is aware of the lawsuit and isn’t surprised by it,” further, “The state fully expected to end up in litigation over Oracle’s failure to deliver.”
In another statement, she said that the Department of Justice Lawyers are reviewing the case and emphasized upon, “We will continue to pursue all legal options.”
Anyhow, the Accountability Office of Federal Government and FBI are also investigating the problem faced by the state’s exchange which caused the consumption of USD 250 million worth federal funds. This problem has become a political criticism on Kitzhaber, who was used to be acknowledged as a health care reformer, while his rivals are calling him a poor guardian of public funds.