Wednesday, February 2, 2011

Ignore the headline. This is the real story-->Sun nailed for paying kickbacks to system integrators.

Oracle Corp. has agreed to pay $46 million to settle claims related to a suit against Sun Microsystems Inc., according to a Justice Department announcement.

This settlement resolves allegations under the False Claims Act and Anti-Kickback Act that Sun, which was acquired by Oracle in 2009 for approximately $7.4 billion, "knowingly paid kickbacks to systems integrator companies in return for recommendations that federal agencies purchase Sun's products," the Justice statement said.

"Sun executed agreements with consulting companies that provided for the payment of fees each time the companies influenced a government agency to purchase a Sun product. These kickback allegations are part of a larger, ongoing investigation of government technology vendors that has resulted in settlements to date with six other companies," Justice added.

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