Oracle has paid $8 million to settle a qui tam lawsuit that claimed the company charged the government for computer training which was never provided. The federal False Claims Act's qui tam provision allows whistleblowers who discover fraud against the government to file suit on the government's behalf. In this case, a former vice president of the company's Oracle University training division contacted the government about what he said were potentially fraudulent billing practices.
Specifically, the suit claimed that Oracle pre-billed the government for certain training that it never provided and failed to comply with travel regulations in billing for expenses.
San Jose Business Journal (subscription required) reported the settlement on May 13, 2005.