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Company says it's not to blame for Oregon's failed health care website; governor seeks lawsuit

SALEM, Ore. - The main technology contractor responsible for building Oregon's failed online health insurance exchange says the governor is unjustly trying to blame it for the Cover Oregon fiasco.

The statement Thursday from Oracle Corp. follows an announcement by Gov. John Kitzhaber that he's asked Oregon's attorney general to sue the Redwood City, California-based company.

Oregon paid Oracle $134 million in federal funds to build what turned out to be a glitch-filled website. The state abandoned plans for fixing the site and is switching to the federal portal.

Oracle says the state badly mismanaged the project by "consistently failing to deliver requirements in a timely manner and failing to staff the project with skilled personnel."

The state is still withholding $25.6 million in payments from the company.

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