Rimini Street flags $50M “refund” from Oracle in legal feud

Rimini Street flags $50M “refund” from Oracle in legal feud

Oracle was awarded US$50 million in damages in 2015 after it took Rimini Street to court

Oracle and SAP third-party support provider, Rimini Street, hopes to be handed a US$50 million “refund” from Oracle more than two years after the vendor was awarded US$50 million damages in a lawsuit against Rimini Street.

In January, the United States Court of Appeals reversed the awards made in Oracle’s favor during and after Rimini Street’s 2015 trial against the vendor, and vacated others, including an injunction that had already been stayed by the appellate court.

The case, and the original payment of US$50 million in damages that was awarded to Oracle in 2015, came about after the vendor filed legal action seeking US$255.9 million over the manner in which Rimini Street downloaded and stored Oracle's software.

Oracle alleged at the time that the process infringed its copyrights. Rimini Street since changed its processes.

However, of the total damages, it is understood that Rimini Street CEO Seth Ravin was obliged to fork out over US$14 million.

This was not the first time Oracle had brought lawsuits against maintenance providers. Several years earlier, it successfully sued TomorrowNow, a former subsidiary of SAP.

On 22 January, Rimini Street filed a petition for a rehearing with the Court of Appeals to recover up to an additional US$32 million from Oracle --  US$32 million over and above the nearly $50 million refund ordered by the Court of Appeals.

However, on 2 March the Court of Appeals denied the rehearing petition. At the same time though, the Court of Appeals also overturned all orders and judgments against Ravin.

Moreover, Rimini Street said the Court of Appeals also affirmed that the company “provided third-party support for Oracle’s enterprise software, in lawful competition with Oracle’s direct maintenance services”.

The favorable appeal decision should result in a refund of nearly $50 million to Rimini Street from Oracle, the company suggested.

“Rimini Street will move forward to recover the court-ordered refund of nearly $50 million from Oracle, consider further appeal options…and continue to prosecute its pending litigation against Oracle – including its claims that Oracle has engaged in illegal and anticompetitive practices and conduct,” Rimini Street said in a statement.

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