Oracle settles NetSuite dispute with its client amicably • The Register

A claim against Oracle-owned Netsuite was recently settled out of court following private mediation with a customer who claimed the vendor oversold and underdelivered its software.

In a court document (PDF) released last week, a California judge dismissed River Supply Inc’s (RSI) suit against Oracle and NetSuite. At the same time, Oracle’s defense was also rejected.

RSI, a Pennsylvania-based supplier of architectural building materials, held a private mediation session with Oracle in August, according to court documents.

Filing its first complaint last year, RSI alleged that Oracle engaged in a “widespread fraudulent scheme and unfair trade practices” in the sale of NetSuite software, while failing to “deliver all features at the promised price” in a project that started in 2021 to replace financial solutions. , commerce and payroll software.

In court documents, Oracle was accused of breaching its agreement with RSI by “failing to implement a feasible ERP solution and failing to provide the services in a professional manner consistent with industry standards, such as Oracle represented him.

In November 2023, Oracle successfully had most of the allegations, including those of fraud, dismissed. However, the judge did not reject RSI’s claim that Oracle breached its contract by failing to deliver working software on time.

This year, in February, the judge allowed RSI to submit an amended fraud complaint. Laurel Beeler, United States District Judge in the Northern District of California, dismissed RSI’s claims of breach of the implied covenant of good faith and fair dealing and its claim under California’s Unfair Competition Law (UCL). However, the court denied Oracle’s motion to dismiss the fraud claim.

A second amended complaint claimed that Oracle’s customers were required to sign “complex and confusing agreements, with terms imposed on the customer at the last moment without sufficient time to review them, and with key parts of the agreements hidden in hyperlinks.”

The plaintiff alleged that in addition to experiencing delays in the project, Oracle failed to deliver the required functionality. RSI claimed it lost $170,000 in implementation and subscription fees, $700,000 in additional resources devoted to the failed project, and also suffered additional damages in the form of lost revenue and efficiency .

A notice published in June of this year indicated that the two companies had scheduled a private mediation session in August. Neither side has disclosed details of the deal. ®