UPDATE 1-JDA Software says court awards damages to Dillard's

* Says Dillard's alleged that unit failed agreement terms

* Says to jury awarded Dillard's $246 mln in damages

* Shares fall 2.5 pct

June 16 (Reuters) - JDA Software Group Inc (JDAS.O) said US court awarded about $246 million in damages to Dillard's Inc (DDS.N), which had filed a lawsuit against a unit of the software maker alleging failure to meet certain terms under an agreement. JDA said department store chain Dillard's had alleged that its recently acquired unit, i2 Technologies, had failed to meet obligations on two products, under a software license and related services agreement.

Dillard's had paid about $8 million for the use of the software and related services.

Of the total damages awarded, $8 million were direct damages, and $238 million were based on alleged consequential, special or punitive damages, according to the verdict of a jury in the District Court of the State of Texas.

JDA is evaluating the verdict and intends to pursue available ways to overturn it, as it believes a more reasonable resolution will ultimately be reached, the supply-chain management software maker said in a statement.

Shares of the Scottsdale, Arizona-based company fell 2.5 percent to $27 in trading before the bell. They had closed at $27.70 Tuesday on Nasdaq. (Reporting by Sayantani Ghosh in Bangalore; Editing by Saumyadeb Chakrabarty)