HP settles EDS lawsuit with BSkyB for $318 million

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HP has signed off a cheque for $318 million (£219 million) to settle the ongoing dispute with BSkyB over an unfulfilled CRM contract from Electronic Data Systems (EDS).

The case began when BSkyB hired EDS in 2000 to provide technology for its customer service centres. However, it fired EDS two years later, claiming it had been mislead about the time and cost of the project.

Despite a court case being launched back in 2004, it took six years for it to come to a head and the ruling went in BSkyB’s favour back in January this year.

HP bought EDS in 2008 – rebranding it as HP Enterprise Services – so the cost of the payout falls at its doorstep.

It had wanted to appeal the ruling but it has given in and paid up the cash. The court originally ruled for $270 million to be paid by HP but it has added an extra $48 million on top to have the case settled once and for all.

BSkyB confirmed the settlement but did not offer any further comment.

[iIT PRO[/i] contacted HP for comment on the case but it had not responded to our request at the time of publication.

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