Oracle Corporation (NYSE:ORCL) has agreed to pay $100 million as a settlement in a lawsuit filed against it by the state.
The Oregon Justice department revealed that Oracle and the state have agreed to throw out the long-running lawsuit in exchange for $100 million to be handed to the state by Oracle. The lawsuit was filed against the company for the failed Obamacare healthcare exchange.
The two parties came to an agreement that Oracle should pay $100 million to the state of Oregon. The amount will be divided three ways so that $60 million will be used to cover the costs for customer support, $25 million will cover the state’s litigation costs for the lawsuit, and $10 million will be given as a grant to the school of science, math and technology programs. The statement made by the Justice Department of Oregon revealed that the settlement also includes an unlimited six-year license for the state to use products and services from the company.
“Today’s settlement agreement ends years of turmoil and taxpayer expense related to the troubled health exchange program I dissolved months ago,” stated Oregon’s Governor Kate Brown.
The state filed the lawsuit in 2014 claiming that the company failed to deliver on the Obamacare healthcare exchange website as promised. Oregon originally sought damages worth $6 billion from the Oracle. The company, however, filed a counter lawsuit against the state for failing to comply with a settlement that would have ended the legal battle. Dorian Daley, the VP and general counsel at Oracle stated that the company was pleased that the case was finally over.
“The beauty of the deal is that if we choose to take full advantage of the free (software), we are uniquely situated to modernize our statewide IT systems over the next six years —something we could not otherwise afford to do,”stated Attorney General Ellen Rosenblum.
Oracle stock closed the latest trading session at $40.86, an improvement by $0.61 from the close in the previous session and a trading volume of 19.09 million shares.