New Lawsuit By Former Employee Alleges Oracle Defrauded Customers by Selling Software Solutions That Did Not Exist

Pamela K. Fulmer

​In a new lawsuit filed in the Northern District of California, former Oracle employee Tayo Daramola alleges that he was retaliated against and later fired by Oracle when he refused to capitulate to Oracle management's demands to misrepresent the status of delivery and functionality of Oracle cloud products.  Essentially Plaintiff contends that Oracle routinely sold customers cloud products that were not fully developed or functionality that did not exist, and that Oracle attempted to enlist Plaintiff in the scheme. Plaintiff asserts claims under various Whistleblower statutes, RICO, and under California law for wrongful termination and retaliation.

Daramola alleges that he was an Oracle America employee through subsidiaries NetSuite and Oracle Canada and was employed from November 2016 through October 2017. Followers of this blog know that Oracle has been accused by other former employees of sharp audit and sales tactics during this time period designed to falsely inflate sales of Oracle cloud products in order to artifically boost Oracle's stock prices.  We also have reported on other lawsuits against Oracle, which allege that Oracle misrepresented the functionality of certain software solutions in order to close the sale. 

Plaintiff alleges in this action that Oracle intentionally attempted to implement a "project management" strategy to buy Oracle more time to actually implement the promised software solution, all the while keeping the customer in the dark.  According to the Complaint:

​Plaintiff contends that when he would not go along with or engage in a cover-up of the fraud, he was retaliated against by his supervisors and ultimately let go.  According to the Complaint, part of the cover-up was to actually accuse the Oracle customer of dropping the ball or not delivering on its "homework", in order to divert attention from Oracle's own failures and related misrepresentations.

Tactical Law will continue to monitor the case, so please check back here for future updates.  The case is Daramola v. Oracle America, Inc., Case 3:19-cv-07910, Northern District of California.  Please feel free to contact us to discuss your potential options if you have experienced similar problems or believe that Oracle has failed to deliver on its promises.