The suit filed in Marion County Circuit Court on Friday accuses Oracle of fraud, false claims, breach of contract and racketeering.
Republican Gubernatorial candiate Dennis Richardson isn't buying it.
"I think that this is political theater at the cost of the taxpayers. These lawsuits are expensive. They had a contract for time and materials. To say it's essentially racketeering -- that is a tough burden of proof. It's about political theater and elections and this thing will go away after election day."
It appears the state has a former Oracle employee that claims Oracle tried to persuade the state not to hire a systems integrator, since it would mean more money for them as the primary contractor.
The state is seeking 200 million dollars.
Oracle filed its own lawsuit against Oregon a couple weeks ago.