BSkyB has begun action in London’s technology and construction court against the US IT outsourcing company EDS. The satellite broadcaster is alleging deceit, negligent misrepresentation and breach of contract by EDS as part of a claim for £709 million (€948m) in damages. The claim is that EDS failed to comply with contractual obligations within the 2000 contract and described its performance as “woeful”. EDS has said it will vigorously refute the allegations during the course of the trial that is expected to last for more than six months.
Mark Howard QC, representing BSkyB, said EDS had simply produced a reflection of what it thought Sky wanted to hear, putting forward a sales pitch that it knew to be misleading, and without the claims the company would not have been selected. EDS was competing against a rival bid from PriceWaterhouseCoopers.
The two companies attempted to renegotiate the deal in the summer of 2001, but the discussion failed, and the contract was terminated in January 2003.
The case continues.