A troubled CRM installation at BSkyB has ended up costing HP some £200 million in interim damages after the firm's EDS arm was found guilty of fraudulent misrepresentation in a legal battle over the failed system - and there could be more to come.
The case, in which judge Sir Vivian Ramsey ruled against HP last month, dates back 10 years to a time when EDS is alleged to have misrepresented its ability to sell a software system used for customer interaction to BSkyB. HP, now the owner of EDS, intends to appeal the judgement, but has agreed to make an interim damages payment.
BSkyB's original claim was for £700 million but the two sides are in ongoing negotiations over the amount that should be paid. In a statement, BSkyB said: "EDS have agreed to make interim payment of £200m to Sky within the next 14 days. The full amount of damages will be finalised in due course."