EDS Settles Botched CRM Project Lawsuit
EDS has agreed to pay $460 million to settle a lawsuit by U.K.-based British Sky Broadcasting Group PLC.
British Sky Broadcasting Group says it has settled with EDS. According to this report on Computer World, a British court in January ruled that EDS had misrepresented facts about its CRM implementation abilities and about how long it would take to complete the job when pitching for the CRM project back in 2000.
"The size of the EDS settlement amount is more than four times the amount of the original $109 million CRM development contract that EDS signed with Sky Broadcasting in late 2000. Under the contract, EDS was supposed to have helped Sky implement a CRM system to support the broadcaster's call centers.
"In its lawsuit, Sky claimed that though the original contract with EDS was worth $109 million, it had it fact spent close to $311 million on software, integration and infrastructure related costs. At the time of the lawsuit, the company had noted that it expected to spend close to another $90 million to finish the CRM rollout and maintain the system."