BSkyB and IT supplier Electronic Data Systems (EDS) have fully settled all litigation between them for £318m (US$474m). This includes damages, costs and interest and interim payments of £270m (US$402m) that EDS had already made to Sky in February…
BSkyB and IT supplier Electronic Data Systems (EDS) have fully settled all litigation between them for £318m (US$474m). This includes damages, costs and interest and interim payments of £270m (US$402m) that EDS had already made to Sky in February 2010.
The claim arose from court action that Sky brought against EDS, accusing the IT firm of lying in a sales pitch for a £50m ($US75m) customer service upgrade.
Sky took legal action in 2004 for “deceit, negligent misrepresentation and breach of contract”. The case stems from a contract signed with EDS to create an advanced customer service system in 2000.
The contract was terminated in March 2002 following a series of delays and budgetary overruns on the part of EDS. Sky completed the work itself at a cost of £265m.
The judge, Justice Ramsey of the Technology and Construction Court in London, ruled in Sky’s favour, concluding that EDS had not made sufficient analysis of what would be required to turn the project around in the stated target of 18 months.
EDS was acquired by Hewlett Packard in 2008.
