State budgets $2 million for Cover Oregon lawsuit

Oracle was the largest technology contractor working on Cover Oregon

Lawsuit
MGN-Online

SALEM, Ore. (AP) — Oregon has budgeted $2 million for its legal fight with software giant Oracle over the state’s failed health care exchange website.

The state sued the Redwood City, California, company in Marion County Circuit Court last month, claiming that Oracle officials lied, breached contracts and engaged in “a pattern of racketeering activity.” Meanwhile, the company has sued the state in federal court alleging breach of contract.

Oracle was the largest technology contractor working on Oregon’s health insurance enrollment website, known as Cover Oregon. The public website was never launched, forcing the state to hire hundreds of workers to process paper applications by hand.

The Statesman Journal reports that the state has hired a Portland business litigation firm — Markowitz Herbold Glade & Mehlhaf PC — to represent it. The firm is giving a 10 percent discount on its rates, but legal experts say the budget likely won’t last more than a year on a case that could last longer than that.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s