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BSkyB/EDS case settled at last

Yesterday, a 10 year legal marathon drew to a close, as HP agreed to settle its dispute with broadcaster BSkyB, for the sum of £318 million. The case dealt with a failed CRM implementation by EDS, now part of HP. It attracted attention, not just because of the length of the case, but the damages being claimed by BSkyB – over £700 million – and accusations, upheld in court, that EDS’ principal salesman had lied about the project delivery.


The original project was meant to cost £48 million. “Fraudulent misrepresentation” by staff working for EDS meant that the IT supplier could not protect itself by a clause limiting its contractual liability to £30 million. BSkyB, for its part, ended up implementing the system in house. The result was that the broadcaster spent £270 million on the system, and it was four years late.


Source: IT Pro


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