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PORTLAND, Ore. (AP) — Oracle, the primary tech contractor on the failed Cover Oregon health insurance exchange portal, is suing Oregon again.
In a lawsuit filed Wednesday in Marion County Circuit Court, Oracle Inc. claims the state reneged on a settlement agreement that was reached in October. The software company claims the agreement was made during a phone call between a senior Oracle official and Gov. Kate Brown's former chief of staff, Brian Shipley.
The complaint says the settlement was for Oregon to receive $25 million of products and services from Oracle. In return, Oregon would drop all claims against the company related to Cover Oregon. The failed exchange cost the state more than $300 million, money that Oregon is trying to recoup from Oracle along with other costs. Oracle, in turn, has accused Oregon of copyright infringement and breach of contract.
"All outstanding litigation was settled between the State and Oracle this past October. We are filing this lawsuit to require the state to honor its part of the agreement, which was negotiated and agreed to in good faith between both parties," said Oracle spokeswoman Deborah Hellinger.
Oregon Attorney General Ellen Rosenblum said there never was a settlement agreement. State officials said it's the attorney general, not the governor, who has the authority to manage the state's litigation and approve such a settlement.
Rosenblum called the lawsuit "a true act of desperation on Oracle's part" and "a figment of their imagination ... designed to protect their bosses at the highest level who participated in the mess that was created by their company."
The lawsuit is part of a lengthy legal battle between Oracle and the state over who is responsible for the project's failure.
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