- Associated Press - Thursday, July 29, 2010

NEW YORK (AP) - The U.S. Justice Department says it is suing Oracle for fraud over software contracts worth hundreds of millions of dollars.

The agency says Oracle Corp. failed to offer government customers the same discounts on its software that it offered commerical customers, as it was required to do. The contract in question ran from 1998 to 2006.

The government says Oracle executive Paul Frascella filed the original lawsuit against under the False Claims Act. The law allows whistleblowers to file suit on the government’s behalf and share in any damages recovered.

Oracle did not immediately return messages for comment.