UK COURT ORDERS HP TO PAY $200M. FOR ' MISREPRESENTATION '

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UK COURT ORDERS HP TO PAY $200M. FOR ' MISREPRESENTATION '

 user 2010-02-08 at 11:08:17 am Views: 62
  • #23620

    http://www.v3.co.uk/v3/news/2257285/hp-faces-200m-bill-eds
    UK COURT ORDERS HP TO
    PAY  $200M. FOR ‘ MISREPRESENTATION ‘

    HP is facing a bill in excess of £200m after the High
    Court in London ruled on the ongoing case between BSkyB and HP’s EDS
    subsidiary.

    The court found that EDS has
    made false representations to BSkyB over its abilities in order to win a
    £48m contract to build a customer relationship management system for
    BSkyB’s operations in 2000.The contract soon became entangled in cost
    overruns and delays, and BSkyB sacked EDS and used its own staff to
    finish the job, at an eventual cost of £265m.”EDS was not found to have
    been systematically negligent, and the ruling centred on the conduct of
    one particular employee,” said Patrick O’Brien, a senior analyst at
    Ovum.”It is not hard to imagine that there are a number of sales people
    at other firms who will say and do anything to get a signature on a
    major contract.”

    The ruling means that IT vendors will need to
    take special care with recruitment policies and make proper background
    checks, according to O’Brien.”We doubt that many vendors restrict sales
    personnel in terms of what they promise in negotiations. Instead they
    have concentrated on making contracts watertight. This attitude will
    need to be reassessed in light of BSkyB’s court victory,” he said.

    The
    High Court has ordered HP to pay £200m for the mistake, and to make an
    interim payment by 17 February.”This is a legacy issue dating back to
    the EDS business in 2000, which HP inherited when it acquired EDS in
    2008,” said HP in a statement.”As the world’s largest technology
    company, HP has built a solid reputation based on strong governance and
    adherence to the highest ethical standards.”