Oracle appears to have miffed the government of Oregan over some work the outfit did on the state's troubled health care exchange website.
Oregon is holding back $25.6 million because the Obama Care "Cover Oregon" site was marred by a slew of bugs and it is not yet fully functional. It was supposed to be up and running in October.
This week, Cover Oregon said it had reached an agreement with Oracle laying out "an orderly transition of technology development services, and protects current and future Cover Oregon enrolees," according to a statement.
Cover Oregon is holding back $25.6 million out of some $69.5 million Oracle claims it is owed for project work.
Meanwhile Ellison has promised to fix the site's problems under Cover Oregon's supervision. In addition, the state is reserving the right to sue Oracle as well as challenge payments it has already made.
Apparently, Oracle's first reaction when it heard that it was not going to get any cash until the site was working was to threaten to pull all of its workers off the project and essentially walk away.