The state of Oregon is suing software company Oracle after it claims that the company breached contracts and engaged in racketeering. Court documents show that the suit was filed in August in Marion County Circuit Court. Meanwhile, Oracle has sued the state of Oregon in federal court for breach of contract. The dispute arises from work done on Oregon's health care exchange website.
The enrollment site for Cover Oregon was never launched, which allegedly forced the state to hire workers to process paper applications. In its lawsuit against Oracle, the state is seeking $240 million in damages. Oracle, on the other hand, is seeking $23 million in payments that it claims it is owed for work it did. The company also claims that the lawsuit is a deflection strategy used to distract from what became a political liability.