Waste Management sues SAP over software quality

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BOSTON/NEW YORK | Wed Mar 26, 2008 5:57pm EDT

BOSTON/NEW YORK (Reuters) - Waste Management Inc WMI.N said it spent more than $100 million on a computer system that was supposed to help it save money, but instead turned out to be a "complete failure," according to a lawsuit filed

It disclosed the problem in a lawsuit -- filed on March 20 in the district court of Harris County, Texas -- against business software maker SAP AG (SAPG.DE), accusing the German company of misrepresenting the capabilities of its software.

SAP sold Waste Management computer programs that were supposed to be designed to manage tasks unique to United States companies that haul waste and handle recycling, with no customization required, the lawsuit said.

"Unknown to Waste Management, this 'United States' version of the Waste and Recycling Software was undeveloped, untested and defective," the suit said.

SAP spokesman Andy Kendzie declined comment.

SAP shares were off 3.4 percent at $50.18 in New York Stock Exchange composite trading.

Waste Management's shares were unchanged from the $34.45 close.

(Reporting by Jim Finkle and Helen Chernikoff; Editing by Andre Grenon)

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