Menu
Oracle: We're going to sue that whistleblower cloud employee

Oracle: We're going to sue that whistleblower cloud employee

'She was terminated for poor performance,' the company says

Oracle plans to sue whistleblower Svetlana Blackburn for malicious prosecution, the company said Thursday.

On Wednesday, Blackburn -- a senior finance manager in Oracle’s cloud business -- said in a lawsuit she was terminated from her job for refusing to go along with cloud-computing accounting principles she considered unlawful.

Blackburn alleges that upper management was trying to fit "square data into round holes" in a bid to boost the financial reports for Oracle's cloud services business that would be "paraded" before company leaders and investors.

"We are confident that all our cloud accounting is proper and correct," Oracle spokesperson Deborah Hellinger said via email. "This former employee worked at Oracle for less than a year and did not work in the accounting group. She was terminated for poor performance, and we intend to sue her for malicious prosecution."

Blackburn, a certified public accountant, received a positive performance review in August 2015. Soon afterward, however, her supervisors “charted a course that veered from legal, ethical and company standards," according to her legal complaint against Oracle. Her employment was terminated on Oct. 15 after she “continued to resist and warn of the accounting improprieties,” the complaint said.

Early this year, Gartner issued a report suggesting that accounting practices were not always reliable for cloud computing vendors.

Oracle shares were down almost 5 percent percent in early trading on Thursday in the wake of news of Blackburn's lawsuit.

"It hasn’t been a good week for Oracle," said Frank Scavo, president of Computer Economics. "On Tuesday it was hit with a $3 billion lawsuit from HP for breach of contract, then on Wednesday a whistleblower lawsuit, and we still have two more days until the weekend."

The HP lawsuit has been pending for years, but a jury trial started this week.

Oracle is well-known for suing competitors, but this week it seems to be on the receiving end. "As they say, live by the sword, die by the sword," Scavo said.

"I think Oracle’s response to this lawsuit is particularly harsh because it touches the core of Oracle’s strategic direction," he added. "Oracle has been under tremendous pressure from investors to show progress on its transition to the cloud," Scavo said. "If what this former employee is saying is true, it would cause investors to question how solid Oracle’s numbers are for its cloud business."

That's no small thing: The hit to Oracle's share price "shows how seriously investors view this situation," Scavo added.


Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Featured

Slideshows

Kiwi channel comes together for another round of After Hours

Kiwi channel comes together for another round of After Hours

The channel came together for another round of After Hours, with a bumper crowd of distributors, vendors and partners descending on The Jefferson in Auckland. Photos by Maria Stefina.​

Kiwi channel comes together for another round of After Hours
Consegna comes to town with AWS cloud offerings launch in Auckland

Consegna comes to town with AWS cloud offerings launch in Auckland

Emerging start-up Consegna has officially launched its cloud offerings in the New Zealand market, through a kick-off event held at Seafarers Building in Auckland.​ Founded in June 2016, the Auckland-based business is backed by AWS and supported by a global team of cloud specialists, leveraging global managed services partnerships with Rackspace locally.

Consegna comes to town with AWS cloud offerings launch in Auckland
Veritas honours top performing trans-Tasman partners

Veritas honours top performing trans-Tasman partners

Veritas honoured its top performing partners across the channel in Australia and New Zealand, recognising innovation and excellence on both sides of the Tasman. Revealed under the Vivid lights in Sydney, Intalock claimed the coveted Partner of the Year 2017 (Pacific) award, with Data#3 acknowledged for 12 months of strong growth across the market. Meanwhile, Datacom took home the New Zealand honours, with Global Storage and Insentra winning service provider and consulting awards respectively. Dicker Data was recognised as the standout distributor of the year, while Hitachi Data Systems claimed the alliance partner award. Photos by Bob Seary.

Veritas honours top performing trans-Tasman partners
Show Comments