By Sarah Left
Published: 27 August 1998 17:40 GMT
Bankrupt drug distribution firm FoxMeyer has filed suit against SAP for $500m, claiming the German company's ERP (enterprise resource planning) system helped drive it under.
FoxMeyer was worth $5bn before declaring bankruptcy in 1996. In an unusual move, the company is blaming R/3's alleged lack of scalability for at least part of its financial troubles. It has accused SAP of fraudulent and negligent conduct, saying the R/3 system that was purchased to run sales, distribution, order processing and inventory did not function as promised.
SAP America's senior vice president, Eric Rubino, responded with a written statement: "This action is without merit and at odds with the facts. The company met all of its contractual commitments and plans to vigorously defend against the claims."
In July FoxMeyer filed suit against Andersen Consulting, which installed the system. That suit also claims $500m in damages.
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