Software Solutions Contract resulted in a $50 Million Lawsuit

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Software Solutions Contract resulted in a $50 Million Lawsuit

It was a happy day when an Enterprise Resource Planning software solutions provider won a hard fought multi-million dollar software/hardware conversion contract. The provider promised the client that its software solution would integrate all operating systems, resulting in a more efficient and cost-effective model. Although all but one module was installed successfully, that last module experienced significant problems.

What happened next felt like a bad dream:

The insured’s client asserted damages of over $50 million for these business occurrences:

  • Lost data
  • Impaired financial models that resulted in inflated profit margin projections
  • Accounting system errors that resulted in delayed payments to vendors
  • Payroll system errors that affected the timeliness and accuracy of paychecks to employees

A lucrative contract had turned into a lawsuit that threatened the insured’s reputation and business.

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