Oracle Settles Lawsuit with U.S. Gov’t for Almost $200 Million (ORCL)

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Enterprise software maker Oracle Corporation ( ORCL ) late Thursday said it would pay more than $199.5 million to settle allegations the company overbilled the U.S. government for services over a period of nine years.

The lawsuit claimed Oracle sold $1.08 billion worth of software to the General Services Administration, a deal struck on the premise that the government would receive the same discounts Oracle gives to commercial customers. The government was alerted to the problem after a whistleblower filed a civil suit against the company.

Tony West, assistant attorney general of the Justice Department's civil division, said in a statement that "Companies that engage in unlawful or fraudulent practices to secure government business undermine the integrity of the procurement process and create an unfair advantage."

Oracle shares fell 23 cents, or -0.8%, in premarket trading Friday.

The Bottom Line
Shares of Oracle ( ORCL ) have a .80% dividend yield, based on last night's closing stock price of $30.07. The stock has technical support in the $26-$28 price area. If the shares can firm up, we see overhead resistance around the $32-$34 price levels.

Oracle Corporation ( ORCL ) is not recommended at this time, holding a DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: ORCL

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