U.S. Government to Sue Oracle on Overcharging Claims (ORCL)

By Dividend.com Staff,

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The U.S. Justice Department late Thursday said it would join a fraud lawsuit against enterprise software giant Oracle Corporation ( ORCL ) , alleging the company overcharged the government on several contracts worth hundreds of millions of dollars.

The lawsuit centers around allegations that Oracle failed to offer government customers the same discounts it offered in the private sector. As per its government contract, which ran from 1998 to 2006, Oracle was required to offer those same discounts.

Oracle whistleblower Paul Frascella originally filed the lawsuit in 2007 under the False Claims Act.

Oracle shares fell 13 cents, or -0.6%, in premarket trading Friday.

The Bottom Line
We had removed shares of ORCL from our recommended list back on May 4, when the stock was trading at $26.01. Shares of ORCL have a .84% dividend yield, based on last night's closing stock price of $23.70. The stock has technical support in the $21 price area. If the shares can firm up, we see overhead resistance around the $25-$26 price levels. We would remain on the sidelines for now.

Oracle Corporation ( ORCL ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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 Nasdaq, Inc.

Created by Dividend.com

This article appears in: Investing Stocks
Referenced Stocks: ORCL

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