Manufacturing company claims Oracle and partners failed to deliver on promises of a working system, costing years and millions
A Pennsylvania-based manufacturing firm, Worth & Co., filed a lawsuit against Oracle over a botched 2015 ERP implementation. The plaintiff says the software giant and its partners breached their contract and strung them along for years while they charged millions for software integration, testing, and training that didn’t result in a working system.
The Lowdown: Between 2015 and 2018, Worth & Co. says it spent $4.5 million with Oracle and two systems integrators on a new ERP system and complementary applications. Despite promises of being able to deliver a working system within months, Oracle and its partners instead ran up bills for software licenses, custom coding, testing and patching, and training.
The Details: According to an account of the lawsuit by The Register, Worth & Co. selected Oracle for its new ERP project in February 2015. Oracle and its partner, now-defunct systems integrator EDREi Solutions, promised a working system by the fall. The launch date slipped several times, initially pushing into early 2016 and 2017 as the project encountered a series of integration issues, coding problems, software rewrites, cloud interoperability problems, and testing delays, the lawsuit says.
In 2017, Worth & Co. dropped EDREi in favor of another Oracle systems integrator, Monument Data Solutions, which restarted the project and worked on the same coding and interoperability issues. By the spring of 2018, Worth & Co. had had enough and abandoned the project.
According to the Register, the lawsuit said that Oracle ran up bills of $4.5 million for licenses, professional services, and recommended training. The training alone, which took place in 2016, cost $260,000, and was recommended on the basis of an imminent system launch.
The Impact: Worth & Co. is seeking a refund of the full project cost plus damages. Oracle is not commenting on the lawsuit.
Background: Among software companies, lawsuits over failed or problematic systems implementations are not uncommon. Oracle has faced a number of similar legal actions over the years, including a 2014 case in which Oregon sued over a failed $240 million development of its Obamacare health care exchange. In 2016, Oracle settled the suit for $100 million.