Just to the north of us here in California, the state of Oregon and the tech company Oracle have been locked in a contract dispute over the state's healthcare website which was "botched," according to the source article. Oracle blames the state for mismanagement, while the state accuses Oracle of fraud and racketeering. The state of Oregon is asking for $6.5 billion in damages as a result of their botched healthcare website.
An interesting development in the case is that confidential documents that were sealed under court order were released to the public through a reporter. Oracle contends that the state of Oregon allowed this to happen, tipping off the reporter and helping her to publish the information. Oracle also contends that the case was already settled last year for $25 million, but that the state is lying about the deal not happening.
The details of the botched website aren't necessarily the point of this post (though they obviously are important in the grand scheme of things). For the purposes of this post, we would like to highlight that businesses can face legal action from a variety of sources and for a variety of reasons.
Though this particular case is a high-profile case of a project falling through or otherwise failing, companies can face legal action from states, people, groups of people, governing bodies, regulatory agencies and, of course, other companies. These cases can involve many different circumstances and allegations. As a result, any company needs experienced and proper legal representation to protect itself from these many legal threats.