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Failed ERP Software

Software & Technology Law Group – Failed ERP & CRM Implementation Lawsuits

ERP implementation negligence

Introduction

CRM (Customer Relationship Management) and ERP (Enterprise Resource Planning) are expensive and often come with a host of promises.  They are often “over-sold” by agressive salespersons hungry for a commission after a long sales cycle.  Misrepresentations can take many forms including but not limited to:

  1. The experience of the company selling the ERP or CRM (the contact management piece);
  2. False statements about the software’s functionality;
  3. False statements about how project management will occur;
  4. Undisclosed defects in the software (many software programs are admittedly sold when they are only 70-75% functional).  Of course the client is never told this;
  5. Milestone dates that never seem to be met;
  6. Deliverables that fail to conform to the contract;
  7. Failed “go live” dates;
  8. Installation nightmares.

If your ERP vendor fits into any of the above, or even if there are other issues not noted above, call us to discuss whether or not you might have a case for fraud, misrepresentation, breach of contract, or defective software.

General Legal Process

If we think you might have a case against your vendor, here is the general process of taking the case From Zero to Recovery.

1.  Pre-complaint investigation – we will thoroughly investigate you case, the emails between the parties, the contracts, the oral representations, etc.  We need to solidify that the documentation supports your case.  There may be a charge for this level of review.

2.  Demand letter – if we believe you have a case, we will tender a demand letter to the Defendant(s) and seek to recover money damages and/or seek other relief that may be needed.

3.   Settlement discussions – after the demand letter is sent, this presents a possibility to explore a potential non-litigation resolution to the case.

3.  Litigation planning – if settlement cannot be reached, we have to take a cold hard look at what your potential damages are, and what the legal arguments (legal causes of action) would be, evaluate potential defenses, and evaluate what the chances of success will be if litigation is pursued.  The costs of litigation also need to be explored.

5.  File complaint – If the factors weigh in favor of filing suit, a fee arrangement will be discussed, and a complaint will thereafter be filed, once our firm is retained.

6.  Discovery – The case will proceed to the discovery phase (interrogatories, depositions, subpoenas, etc.)

6.  Settlement or Trial – From there, the case either settles via a private mediation or arbitration, or voluntary settlement, and/or the case can proceed to trial.  Note:  in civil law cases, most cases settle without the need to go to trial

Sample Complaint Allegations (MillerCoors, LLC v. HCL Technologies Limited)

Here is some sample language in one federal court lawsuit filed against an ERP vendor for failed implementation.

“This matter arises from HCL’s failure to deliver an enterprise software solution to MillerCoors on time and in accordance with the requirements of the parties’ agreements. HCL enjoyed an extended period of time to learn and understand MillerCoors’ business and its processes and determine the level of effort required to successfully deliver the software. Yet, HCL repeatedly failed to meet the project deadlines it recommended and agreed to. The software solution HCL did deliver was not free of defects as required and failed to meet basic performance requirements and industry standards.

Further, HCL failed to provide an adequate staff with the requisite skills to achieve its contractual commitments. HCL utterly failed to provide leadership on the project and adhere to its program management and quality assurance obligations. Not only did HCL fail to perform under the contract, but also HCL’s failure to staff the project with a sufficient number of people and failure to follow its own methodology and quality assurance processes was done knowingly, or with reckless disregard for the impact such actions would have on MillerCoors. HCL’s actions have caused MillerCoors significant damages for which MillerCoors is entitled to redress.”

Breach of Contract Alleged

The Plaintiff alleged that Defendant materially breached the contract.

“HCL breached the Agreement by, at least,

(1) failing to provide and deliver to MillerCoors each Deliverable described in Work Order No. 1-3 on or before the due dates therefor;

(2) failing to provide and deliver Deliverables in compliance with the requirements for each such Deliverable under the MSA and Work Order No. 1-3;

(3) failing to staff the project with an adequate number of skilled personnel to perform the Services and maintain staffing levels as necessary to properly perform HCL’s obligations;

(4) failing to provide the Services at levels of accuracy, quality, completeness, timeliness, responsiveness, resource efficiency and productivity that are equal to or higher than the accepted industry standards of first tier Suppliers and develop a system consistent with the best practices of leading Suppliers;

(5) failing to implement and adhere to appropriate project methodology;

and

(6) failing to perform adequate Program Management and quality assurance services.”

Damages Sought

This case was a whopper with 100 million in damages being sought:

“As a result of HCL’s breaches, MillerCoors has suffered damages in an amount to be proven at trial in excess of $100,000,000.”

ERP Lawsuits in the News

  1. Miller Coors sues HCL Technologies
  2. Lawsuit against ERP consulting firm
  3. Marin County ERP implementation lawsuit
  4. Overview of key ERP litigation (discusses Vendors including SAP, JDA Software, Deloitte Consulting, CapGemini, Epicor Software Corporation, Infor Global Solutions, Axon, Oracle, Lawson Software, PeopleSoft, Kaludis Consulting Group, BAAN USA,  EDS, KPMG, Anderson Consulting, JD Edwards, IBM, Siebel and Manguistics).
  5. Legal risks of choosing wrong ERP vendor

Contact A CRM / ERP Software & Technology Litigation Law Firm

If you have a legal issue involving Microsoft, Oracle, SAP, KPMG, Deloitte, IBM or other software vendor, contact us to discuss your case.  Whether it involves CRM, ERP or Supply Chain Management Software, we may be able to help.  You can send us a email summary of your case by emailing us at the email address on the right sidebar on this page.  Or, call us at (877) 276-5084.  Click here to see our Federal Court Experience