SAP paid Waste Management an undisclosed, one-time cash settlement in 2010 to resolve a lawsuit over an allegedly failed enterprise resource planning (ERP) implementation. The settlement terms were confidential. The contemporaneous account does not establish that either party’s allegations were true, disclose the payment amount, or report a ruling on the merits.
What was the lawsuit about?
Waste Management sued SAP in March 2008, alleging fraud tied to the implementation of SAP enterprise resource planning software. Computerworld reported that Waste Management wanted an ERP package capable of meeting its business needs without extensive custom development. The dispute involved allegations about a product demonstration, software functionality and implementation decisions.
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SAP reportedly countered that Waste Management had mishandled requirements and staffing. These were opposing positions in litigation, not findings of fact. The dispute concerned a business software project—not consumer waste-collection services. Computerworld’s 2010 report describes the parties’ accounts.
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The Computerworld report describes the settlement as a one-time cash payment from SAP to Waste Management, but gives no amount. Waste Management attorney Jim Wetwiska said, “The terms of the settlement are confidential.” The payment should not be confused with the larger sums Waste Management reportedly sought as damages.
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| Figure | What it refers to |
|---|---|
| More than $100 million | Project spending Waste Management reportedly claimed as damages, as described in Computerworld’s 2010 account; this was a party’s claim, not a court finding. |
| More than $350 million | Benefits Waste Management reportedly said it would have realized if the software had succeeded, as described in the same 2010 account; this was also a party’s claim, not a court finding. |
| Settlement payment | Undisclosed in the contemporaneous report; no specific amount is established there. |
Did SAP admit wrongdoing?
The reported settlement does not establish an admission of wrongdoing. SAP spokesperson Andy Kendzie said, “The matter between Waste Management and SAP has been resolved, and the case has been dismissed.” The account reports that the case ended in settlement; it does not provide a merits judgment deciding which party was right.
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