California firm hides documents about its work on Oregon health insurance enrollment website.

California software giant Oracle America is trying to hide from public view internal documents that undermine its claim to have built a functioning Oregon health insurance enrollment website, state lawyers say.

The state is filing a new, heavily-redacted motion as part of ongoing litigation over who is to blame for the $300-million debacle of the Oregon health insurance exchange. The motion says Oracle is misusing its right to mark documents as confidential in order to block Oregon Attorney General Ellen Rosenblum from making them public – despite lacking a valid basis to do so.

The motion is a bit of turnabout for Oracle, which has accused Gov. Kate Brown and Rosenblum of hiding public records that would help the company's case.

Oracle, the state contends, is hiding from the public documents that "belie Oracle’s public relations story, undermine its litigation defenses, and strongly support plaintiffs’ claims," according to the motion filed Wednesday in Marion County Circuit Court.

The state is suing Oracle for alleged fraud and racketeering, claiming the company mispresresented its services ability to provide an functioning health insurance exchange by October 2013. Oracle, meanwhile, has sued Oregon in federal court for alleged copyright violations and unpaid bills.

The state contends that Oracle has marked about 95 percent of its documents obtained from the company as confidential or "Attorneys' eyes only." This makes it difficult for the state to prepare and question potential witnesses, and also "frustrates ongoing federal and congressional investigations," according to the motion.

In a statement, Oracle accused the state of "unsupportable theories" and "misleading statements." It also defended its use of the confidentiality designation: "There are many reasons for protecting the confidentiality of litigation documents. In this case, one of the reasons is that some of the information in Oracle's documents could compromise the security of the State's IT systems. Others involve personal information about individuals. Still others include information about Oracle's other customers and trade secrets."

The new motion comes even as Oracle has asked the federal government to direct Oregon to drop its lawsuit, as first reported by the Portland Business Journal.

By Nick Budnick
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