PeopleSoft whistleblower wins $17.7m bounty from US government

A former PeopleSoft employee who blew the whistle on the company’s false price negotiations with the US government has received a $17.7m (£9.5m) bounty.

A former PeopleSoft employee who blew the whistle on the company’s false price negotiations with the US government has received a $17.7m (£9.5m) bounty.

His actions have also led to Oracle agreeing to pay the US government $98.5m (£53m) to settle its liability for defective pricing disclosures made by PeopleSoft. Oracle bought PeopleSoft at the beginning of last year.

James Hicks reported the price negotiation practices of PeopleSoft to the authorities and used whistleblower legislation to sue Oracle and win a percentage of the settlement. 

The US government went after Oracle after it claimed that PeopleSoft issued false price disclosure information when it negotiated a contract under the General Services Administration (GSA) Multiple Award Schedule (MAS) programme.

The US Department of Justice said the settlement resolved allegations that PeopleSoft “made pricing disclosures to GSA that were not current, accurate and complete concerning the sale of software licenses and related maintenance services”.

As a result of the defective disclosures, said the DoJ, most federal purchasers under PeopleSoft’s MAS contract paid inflated prices for purchases of software and services between March 1997 and September 2005.

As a result of the defective disclosures, said the DoJ, most federal purchasers under PeopleSoft’s MAS contract paid inflated prices for purchases of software and services between March 1997 and September 2005.

Due to Oracle’s acquisition of PeopleSoft – at the beginning of 2005 – it inherited PeopleSoft’s liability under the GSA contract. Oracle said it was not aware of the problem when it bought PeopleSoft.

 

CW+

Features

Enjoy the benefits of CW+ membership, learn more and join.

Read more on Business applications

0 comments

Oldest 

Forgot Password?

No problem! Submit your e-mail address below. We'll send you an email containing your password.

Your password has been sent to:

-ADS BY GOOGLE

SearchCIO

SearchSecurity

  • Dissecting the Hack

    In this excerpt from chapter three of Dissecting the Hack: The V3RB0TEN Network, authors Jayson E. Street, Kristin Sims and Brian...

  • Digital Identity Management

    In this excerpt of Digital Identity Management, authors Maryline Laurent and Samia Bousefrane discuss principles of biometrics ...

  • Becoming a Global Chief Security Executive Officer

    In this excerpt of Becoming a Global Chief Security Executive Officer: A How to Guide for Next Generation Security Leaders, ...

SearchNetworking

SearchDataCenter

SearchDataManagement

Close