I don't know if Oregon's suit has merit or not, but that sure sounds like my employer's experience with Oracle.
This is pretty much SOP with any big custom system from a big company. Sure, they'll check off the boxes of the requirements, but it'll never work right until you fork over triple what the original contract was for, for "additional implementation." It's essentially extortion because at that point the organization is so many millions of dollars into it that they're willing to spend millions more to make it functional.
I'm very pleased that Oregon is not succumbing to this extortion and are fighting back. Oracle has claimed in the press that it was because the state added additional requirements midstream, but the problem isn't that they didn't implement those additional requirements, it's that they never delivered a functioning product, thus they did not fulfill a single requirement. Even if "it works" wasn't a specific requirement, it should be implied by the existence of any requirement which in itself requires the system to be functional. I hope Oregon gets back every penny they gave to Oracle, and I hope there's a legal reason they can get some massive penalties too.