Citigroup 900m oracle flexcube streetjournal has agreed to pay $900 million to Oracle Corp. to settle a long-running dispute over the bank’s use of Oracle’s Flexcube software. The settlement, announced on Monday, brings an end to a legal battle that began in 2014 when Oracle sued Citigroup for copyright infringement.
Oracle claimed that Citigroup had used its Flexcube software without a proper license, and had made unauthorized modifications to the software. Citigroup, in turn, argued that it had paid for the software and had the right to modify it as it saw fit. The case went to trial in 2019, but a jury was unable to reach a verdict. The two companies then entered into settlement talks, which resulted in the $900 million payment. In a joint statement, the companies said that they were “pleased to resolve this matter” and that they “look forward to a continued relationship.”
The settlement is a significant one for both companies. For Citigroup, it represents a major expense, equivalent to roughly 3% of the bank’s net income for 2020. The bank had already set aside $400 million to cover potential damages in the case, but will now have to pay an additional $500 million. For Oracle, the settlement is a major victory. The company has been aggressively pursuing companies that it believes are using its software without proper licenses, and has won several high-profile cases in recent years. The $900 million payment from Citigroup is one of the largest settlements the company has ever received.
The settlement between Citigroup and Oracle also brings an end to a long-running legal battle over the use of Oracle’s Flexcube software. While the $900 million payment is a significant expense for Citigroup, it allows the bank to put the dispute behind it and move forward. For Oracle, the settlement is a major victory and a sign that the company’s efforts to protect its intellectual property are paying off.