Oracle faces ongoing lawsuit over delayed NetSuite software delivery

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Oracle faces ongoing lawsuit over delayed NetSuite software delivery
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Oracle Corporation (NYSE: ORCL ), a leading provider of enterprise software, continues to face a lawsuit from River Supply Inc. (RSI), a Pennsylvania-based construction material supplier, over alleged breach of contract related to delayed delivery of NetSuite software. The case, which has been progressing this week, is now primarily focused on Oracle's alleged failure to provide functional Enterprise Resource Planning (ERP) software within the agreed timeframe.

Earlier this week, U.S. Magistrate Judge Laurel Beeler permitted RSI's breach of contract claim to proceed, dismissing Oracle's attempt to label it as mere puffery. RSI was also granted permission to amend its original lawsuit, which included allegations of fraudulent sales practices by Oracle. The judge dismissed most of these accusations, leaving the breach of contract as the only surviving claim.

RSI initiated the lawsuit against Oracle between June 2021 and January 2023 due to issues with the sale and delayed implementation of NetSuite software. The company accused Oracle of missing "go-live" dates and deploying complex and inadequately disclosed sales agreements.

The dispute dates back to over 26 months ago when RSI claimed that Oracle took their money but failed to deliver a functional ERP product. The issue has been ongoing since Oracle's $9.3 billion acquisition of Netsuite in 2016. RSI accused them of obscuring contractual arrangements using a Subscription Services Agreement within a complex set of DocuSign (NASDAQ: DOCU ) contracts.

In June 2023, RSI further accused Oracle of luring customers into complex, inadequately disclosed agreements linked to the SuiteSuccess ERP product and missing "go-live" dates from mid-2021 until January 2023. However, Oracle defended itself by seeking to dismiss these allegations as general claims and not fraudulent in nature.

As of today, the case continues with RSI maintaining its lawsuit against Oracle for breach of contract over delayed NetSuite software delivery.

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