Marin County settles legal claims against Deloitte, SAP over software project
The county will reportedly net just $3.9 million in the deal and will continue using SAP's software
IDG News Service - A long-running legal dispute between Marin County, Calif., Deloitte Consulting and SAP over a troubled software project has concluded in a legal settlement this week that will reportedly net the county far less money than it had sought.
Deloitte served as a systems integrator on the project, which involved the implementation of SAP ERP (enterprise resource planning) software. SAP's Public Services arm has also been involved.
"The settlement follows the Court's dismissal of several of the County's claims, and the County's conclusion, after a full investigation, that it should voluntarily dismiss its remaining fraud claim and its allegations of improper influence of a County employee who managed the project," Deloitte and Marin said in a joint statement. "While the County remains concerned about the activities of its former employee, evidence uncovered after the complaint was filed revealed that Deloitte Consulting did not improperly influence the employee."
"Accordingly, what remained was primarily a dispute about the scope of work that Deloitte Consulting was engaged to perform," the statement added.
Ernest Culver is the employee in question. Marin County had alleged that Culver was "approving Deloitte's deficient work on the project, approving payments, and causing Marin County to enter into new contracts with Deloitte and SAP" while he was interviewing for jobs at both companies.
Marin County also alleged that Deloitte used the project as a training ground for inexperienced workers.
The settlement should not be construed as an admission of wrongdoing by either Deloitte or Marin, according to the statement.
"As a result of the litigation process, the County has determined it is in its best interests to dismiss the claims against SAP," an agreement between SAP and Marin stated. SAP also admits no liability or responsibility, it added, and Marin is still using the SAP system.
That represents a shift from the county's announcement in 2010 that it would remove and replace the SAP software with something else, due to the belief that fixing it would cost more money than an alternative.
"SAP is delighted with the outcome of this case," spokesman Andy Kendzie said in a statement. "We maintained all along this had no merit. Time after time the courts agreed with that as they threw out, or diminished, baseless allegations. We look forward to resuming a constructive working relationship with Marin County."
At one point, Marin County had sought $35 million in damages and alleged that Deloitte and SAP's alleged wrongdoing fell under the auspices of the federal RICO (Racketeer Influenced and Corrupt Organizations) Act, which would have trebled the damages. A judge ultimately tossed out the racketeering claims.
But the settlement will only provide Marin County with roughly $3.9 million, to be reimbursed from Deloitte's fees, according to a report in the Marin Independent Journal newspaper, which procured the document. County officials didn't respond to a request for a copy of the settlement on Friday, and one could not immediately be obtained from SAP and Deloitte.
The settlement's terms include a gag order preventing county officials from speaking about the case except for the joint statement, according to the newspaper.
Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com
- Best iPhone, iPad Business Apps for 2014
- 14 Tech Conventions You Should Attend in 2014
- 10 Desktop Apps to Power Your Windows PC
- How to Add New Job Skills Without Going Back to School
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
If you use ‘password,’ one the worst passwords, as your password, fail to keep antivirus protection updated and don’t bother to deploy security patches to close critical vulnerabilities, then maybe you should consider working for the cybersecurity-clueless federal government; you’d fit right in, according to Senator Tom Coburn's cybersecurity and critical infrastructure report.
- IT Certification Study Tips
- Register for this Computerworld Insider Study Tip guide and gain access to hundreds of premium content articles, cheat sheets, product reviews and more.
- Changing the Way Government Works: Four Technology Trends that Drive Down Costs and Increase Productivity
- This paper discusses four technology-based approaches to improving processes and increasing
productivity while driving down department and agency costs.
- Red Hat Enterprise Linux - The Original Cloud Operating System
- Linux adoption is growing against a number of measures, such as the
number of supercomputers that run Linux and the size of the contributing...
- OpenStack Hype vs. Reality: CIO Quick Pulse
- Open-source architecture can enable IT departments to build infrastructure-as-a-service (IaaS) clouds running on standard hardware.
- Building a Bridge to the Next Generation Data Center
- Selecting a widely adopted operating system is a foundational component of a standardization strategy.
- OpenStack and Red Hat: IDC White paper
- Most OpenStack deployments are by public cloud providers that are early adopters of technology and use OpenStack in a do-it-yourself deployment and support... All Government IT White Papers
- Webinar: Building a Big Data solution that's production-ready Big data solutions are no longer just a nice-to-have.
- Meg Whitman presents Unlocking IT with Big Data During this Web Event you will hear Meg Whitman, President and CEO, HP discuss HAVEn - the #1 Big Data platform, as well...
- The New Way to Work Knowledge Vault This Knowledge Vault focuses on how, in today's increasingly virtual world, it's more important than ever to engage deeply with employees, suppliers, partners,...
- Getting Ready for BlackBerry Enterprise Service 10.2 Find out how BlackBerry® Enterprise Service 10 helps organizations address the full spectrum of EMM challenges, while balancing the needs of both the...
- Containerization Options: How to Choose the Best DLP Solution for Your Organization This webcast outlines a framework for making the right choice when it comes to containerization approaches, along with the pros and cons of...
- All Government IT Webcasts