SALEM, OR – Oracle Corp. has sued the state of Oregon in a fight over the state's health insurance exchange, saying government officials are using the technology company's software despite $23 million in disputed bills.
Oracle's breach-of-contract lawsuit against Cover Oregon was filed Friday in federal court in Portland. It alleges that state officials repeatedly promised to pay the company but have not done so.
The lawsuit seeks payment of the disputed $23 million plus interest, along with other unspecified damages.
Oregon's health-insurance enrollment website was never launched to the general public. State officials have blamed Oracle, but the company says the state's bad management is responsible.
Gov. John Kitzhaber has called for the state to sue Oracle and recover some of the $134 million it has already paid to the Redwood City, California, company.
In June, Oregon issued legal demands for documents that could become evidence in a possible lawsuit against Oracle under the state's False Claims Act.
The company says the project became a victim of bureaucratic infighting between two state agencies responsible for both the Cover Oregon website and a separate effort to modernize a complex state computer system.
The lawsuit also faults the state's decision not to hire a systems integrator, who works as a sort of general contractor to coordinate and direct the work of multiple technology vendors. With the state acting in that capacity, the lawsuit says, Oracle programmers were at the whims of indecisive and warring state managers.