Menu
Oracle settling with ex-worker over alleged fiddling of cloud accounts

Oracle settling with ex-worker over alleged fiddling of cloud accounts

The employee said she was terminated from her job for refusing to comply

Oracle has informed a federal court that it is settling a lawsuit in which a former employee had charged that she had been terminated from her job for refusing to go along with accounting principles that she did not consider lawful.

In a joint submission Wednesday to the U.S. District Court for the Northern District of California, lawyers for Oracle and the former employee Svetlana Blackburn asked for the vacation of a case management conference scheduled for Thursday, while submitting a notice of settlement to notify the court “that the lawsuit has been settled in principle, and to request thirty (30) days in which to file a dismissal.”

The lawsuit had drawn interest amid concern that companies could be dressing up their cloud revenue in a highly competitive environment.

Gartner, for example, warned in December 2015, that “assessing vendor cloud revenue claims has become more challenging, with many vendors' IT-related businesses being complicated and nuanced.”

In her lawsuit filed last year, Blackburn, formerly a senior finance manager in Oracle’s cloud business, alleged that senior management was trying to fit "square data into round holes" to boost the financial reports of the cloud services business. Her superiors are alleged to have ordered her “to add millions of dollars in accruals to financial reports, with no concrete or foreseeable billing to support the numbers."

The former employee also claimed to have warned her supervisor that she would blow the whistle if instructed to continue in the same manner, but her employment was terminated on Oct. 15 even though she had received a positive performance review in August of the same year.

Oracle has countered that Blackburn made revenue forecasting errors for the first quarter of fiscal 2016, covering June 1, 2015 through Aug. 31, 2015, and “she refused to accept responsibility for them.”

The company’s managers lost confidence as a result of the errors in her ability to "effectively perform her job as a manager and generate accurate forecasts."

Blackburn never said that she would "blow the whistle," or make any statements that any accruals violated applicable securities laws or regulations or amounted to shareholder fraud, the company said in a filing.

The former employee, who sued Oracle for punitive damages, claimed protection under the Dodd-Frank Wall Street Reform and Consumer Protection Act that protects employees from discrimination after they make disclosures under the Sarbanes-Oxley Act, which is legislation that aims to prevent corporate accounting fraud and errors.

Both sides said in a filing earlier this month that a settlement could not be reached after mediation. Oracle had said in June last year that it intended to sue Blackburn for “malicious prosecution."

Oracle and Blackburn’s lawyers did not immediately comment on the proposed settlement or its terms.

District Court Judge Edward M. Chen has ruled that an order of dismissal with prejudice should be filed within 30 days. A dismissal with prejudice would bar Blackburn from filing another lawsuit on the same claims.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments