SAP To Pay Calif. $59M Over Botched Payroll System Contract

Law360, Washington (June 7, 2016, 3:31 PM EDT) -- SAP Public Services Inc. will pay the state of California $59 million to settle state court allegations over the allegedly botched modernization of a payroll system for state employees, California's controller announced on Monday.

According to the announcement from State Controller Betty T. Yee, the settlement — which comes with no admission of liability — resolves the breach of contract lawsuit first filed against SAP in November 2013 after the controller's office called off a $90 million contract under the 21st Century Project.

“I am pleased that we have settled this important litigation on beneficial terms that advance the objectives and...

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