UCLA settles Oracle ERP dispute with $3.1M in credits and $1.31M wiped off the bill
UCLA has settled a dispute with Oracle over a troubled financial systems project, with the university receiving $3.1 million in future service credits and a further $1.31 million i
By The Register
UCLA has settled a dispute with Oracle over a troubled financial systems project, with the university receiving $3.1 million in future service credits and a further $1.31 million in unpaid fees waived.
The dispute concerned Oracle’s enterprise resource planning project for the University of California, Los Angeles. The project was originally budgeted at $120 million.
Documents released under a California Public Records Act request said UCLA stopped paying its Oracle subscription in September 2024. The university alleged that Oracle’s cloud software lacked enough functionality to meet its requirements, particularly for grants management.
UCLA had been billed $1.66 million in outstanding invoices. Under the settlement, it agreed to pay $350,000, while Oracle waived the remaining $1.31 million.
The $3.1 million in credits can be used against future Oracle charges, but will expire at the end of May 2028.
The settlement was recommended by the University of California’s Compliance and Audit Committee in May and approved by the university’s Board of Regents.
Neither side admitted liability, and the agreement prevents both parties from making further claims for damages connected with the contract dispute. Its terms were intended to remain confidential, although UCLA is subject to California’s public records law.
The settlement brings the dispute over the project to an end, with UCLA receiving credits towards future Oracle services rather than a cash payment.