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Waste Management Sues Software Giant

Date: March 28, 2008

Source: News Room

Waste Management is suing software giant SAP over its $100 million investment in an accounting system that has failed to meet contract expectations. The company filed its lawsuit on March 20 in the district court of Harris County, Texas after months of negotiation and recent mediation efforts broke down. According to Lynn Brown, vice president corporate communications, "During the sales process, SAP conducted fraudulent demonstrations of its software." Evidently, SAP misrepresented it as an ‘out-of-the-box' solution, adapted for US requirements and tailored to the needs of waste management firms. The company has been wrestling with the problem since 2005 when the company "almost immediately discovered significant 'gaps' between the software's actual functionality and their business requirements." It is SAP policy to not comment on any legal proceedings.

Waste Management, Inc.: www.wm.com.

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