Enterprise software maker Oracle Corporation (
) 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
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
The Bottom Line
Shares of Oracle (
) 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 (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.1 out of 5 stars.
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, as well as a detailed explanation of
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