Failed ERP and IT projects happen all the time, but it is the largest and most costly failures that get the media attention. This week SAP paid an undisclosed sum to former customer Waste Management (WM) over a failed ERP implementation. WM sued SAP after the software it received was "undeveloped, untested and defective", according to a filing with the Securities and Exchange Commission (SEC). The original litigation required SAP to pay WM $100 million towards the cost of the software and for more than $350 million with respect to lost profits. SAP is not the only vendor who has legal issues. HP is currently appealing against a $220 million fine over a failed EDS contract (EDS is now part of HP). A court found that EDS has made false representations to satellite TV company BSkyB over its abilities in order to win a $70 million contract to build a customer relationship management (CRM) system.
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