Puerto Rican government agency claims Infor's negligence cost it $9M
Infor failed to properly maintain a software system used by the Puerto Rican tax authority, a new lawsuit claims
IDG News Service - Infor is being sued by a Puerto Rican tax authority on grounds that its failure to maintain software used by the organization racked up $9 million in costs.
The Municipal Revenue Collection Center first acquired a limited license in 2006 for Infor's Hansen software, according to the lawsuit filed this week in U.S. District Court for the District of Puerto Rico. Hansen, which Infor purchased in 2007, provides asset management and billing capabilities for public sector agencies.
The tax authority initially hired a Hansen partner, Rock Solid Technologies, to install the system, but later decided to switch to Infor, according to the suit. This resulted in three support and services contracts between the authority and Infor, which were signed in early 2010 and had a total value of about $1.1 million.
"The services provided by Infor have been very deficient and negligent since the beginning of Infor's contractual relationship with [the authority]," the suit states. Infor allegedly caused "serious communication, assistance and cooperation problems," it adds.
Ultimately, the authority came to believe that the staffers who originally installed the software no longer worked for Infor, as the technicians assigned to its project had a "clear lack of knowledge" about how it worked, according to the suit.
Infor has been "absolutely incapable of resolving serious problems" in the Hansen system, which involve data integrity, management of overpayments and other issues, according to the suit.
On 33 occasions, Infor "failed to provide satisfactory answers to serious problems," according to the suit.
This has forced the authority's own staffers to create patches and workarounds to keep the system running, a task that "becomes very complicated and sometimes impossible" because the authority can't get access to the source code, it adds.
The authority's suit claims Infor is in breach of contract, and asks that the original agreements be nullified and the money returned. It also demands $9 million in damages to make up for "overtime paid and compensatory time granted to [authority] employees dedicated to technical support tasks and provisional remedies related to the malfunctioning of the Hansen tax system."
In addition, it is asking the court to order Infor to provide access to the source code, so the authority's teams "can develop a solution to the multiple problems it faces in its daily use and management of the system."
An Infor spokeswoman didn't respond to a request for comment on Tuesday. As of Tuesday, Infor had not filed a response to the suit in court.
While it is "certainly plausible" that key personnel left Hansen after Infor acquired it, it is equally possible that the authority's demands to Infor were unreasonable, and it's impossible to judge the situation without Infor's side of the story, said analyst Michael Krigsman, CEO of consulting firm Asuret.
- 15 Non-Certified IT Skills Growing in Demand
- How 19 Tech Titans Target Healthcare
- Twitter Suffering From Growing Pains (and Facebook Comparisons)
- Agile Comes to Data Integration
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- What Datapipe customers need to know about the new PCI DSS 3.0 compliance standard This handy quick reference outlines what PCI DSS 3.0 is, who needs to be compliant and how Alert Logic solutions address the new...
- The 12 PCI DSS 3.0 requirements addressed by Peer 1 Hosting This handy quick reference outlines the 12 PCI DSS 3.0 requirements, who needs to be compliant and how Alert Logic solutions address the...
- Defense Throughout the Vulnerability Life Cycle This whitepaper provides insight into how to leverage threat and log management technologies to protect your IT assets throughout their vulnerability life cycle.
- The Critical Role of Support in Your Enterprise Mobility Management Strategy Most business leaders underestimate the importance of tech support when they choose an EMM solution. Here's what to put on your checklist.
- Live Webcast Best Practices for the Hyperconverged Enterprise Network To the Age of Constant Connectivity and Information overload
- Live Webcast Unmasking the Differences between Consumer and Enterprise File Sync & Share The consumerization of IT combined with the rapid pace of the modern mobile workplace is forcing enterprise IT teams to evaluate file sync...
- Live Webcast Government Agency Webifies Outdated COBOL Applications Let this CTO tell you how his agency converted 1980s-era green screens into an e-filing portal for the 100,000 cases handled each year...
- 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... All Applications White Papers | Webcasts