Oregon settles Cover Oregon lawsuits with Oracle for $100 million

Oregon and Oracle settle all lawsuits

PORTLAND, Ore. -- Oregon Gov. Kate Brown announced a settlement Thursday of six lawsuits the state and software company Oracle filed against each other in response to the failure of the Cover Oregon health exchange website.

The state fired Oracle in the spring of 2014, ending the Cover Oregon project, and moved to the federal healthcare exchange.

The settlement, which is valued at more than $100 million, includes about $25 million in cash. The remainder of the settlement consists of technological investments from Oracle, including a six-year unlimited license agreement for software and technical support at no cost to the state.

Oracle is also funding a $10 million state technology education program.



"Today's settlement agreement ends years of turmoil and taxpayer expense related to the troubled health exchange program I dissolved months ago," Brown said.

The state of Oregon originally paid Oracle $240 million for the failed project, according to a report in the Oregonian.

Attorney General Ellen Rosenblum said the settlement is a victory for both sides.

"This settlement outcome is a 'win-win' for the people of Oregon — without the expense and continued impact on our collective psyche," Rosenblum said.

Oracle Executive Vice President Dorian Daley, who is also the company's general counsel, called the settlement an "innovative resolution."

"We are pleased to have this contentious litigation behind us. ... This is an innovative resolution to a complex matter," Daley said.

The state's Republican leadership also weighed in, releasing a statement from Oregon State Representative Mike McLane that cast blame on state leadership, in addition to Oracle.

"While Oracle clearly made mistakes, there is no escaping the fact that the state, too, shares blame for the failure of Cover Oregon," McLane said. "From the very beginning, the project was mismanaged and wracked by the failures of our bureaucracy.

"Despite the state's obvious culpability, Attorney General Rosenblem put tens of millions of taxpayer dollars on the line for a legal strategy that was motivated by politics and never stood a realistic chance of recovering everything that was lost.

"Today's settlement marks the end of one of the most embarrassing chapters in Oregon's history."

Background: Congressional panel: Kitzhaber mishandled Cover Oregon creation

Cover Oregon legal fees now $4.6M over budget



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