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SAP wants racketeering claims thrown out

Chris Kanaracus | Feb. 24, 2011
SAP wants a judge to toss out allegations by the government of Marin County, California, that it engaged, along with Deloitte Consulting, in a racketeering scheme meant to bilk the county out of more than $20 million in connection with a troubled ERP (enterprise resource planning) project.

An attorney for Marin County said Thursday the county had just received SAP's motion and could not immediately comment on its contents.

"We'll review it and respond," said Sheila Lichtblau, deputy county counsel. "[The motion] doesn't surprise me. That's just the way litigation goes."

She declined to comment on SAP's characterization of the county's allegations as specious, but noted that the original complaint goes through the claims in "extreme detail."

Marin County's complaint alleges violations of the federal RICO (Racketeer Influenced and Corrupt Organizations act). The county wants $35 million in damages, which would be tripled under RICO to $105 million, along with punitive damages.

But Lichtblau indicated the county is open to settling the case out of court. "Obviously the county is always interested in talking to the parties and trying to see if there is a way short of litigation to resolve these type of issues," she said.

 

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