Sky wins £200m claim against EDS
January 28, 2010
BSkyB has won a five-year legal action against Electronic Data Systems (EDS) for deceit, negligent misrepresentation and breach of contract. The UK Courts found that EDS had lied to Sky in order to secure a contract as part of the company's investment in a new customer relationship management system.
In summer 2000, Sky appointed EDS to design, build and implement an advanced customer service system at its customer contact centres in Scotland. The relationship was terminated in early 2002 after EDS failed to perform its contractual obligations. As a result, Sky assumed direct responsibility for systems integration and subsequently completed the project. The legal action against EDS began in 2004.
The final amount of costs and damages will be determined by the Court in due course. However, based on the judgement, Sky anticipates claiming at least £200 million (E229m) from EDS – which is now part of Hewlett Packard .