AIB sues software firms for €84m
ALLIED Irish Banks (AIB) is suing two related international companies claiming €84m spent by it on a new retail banking computer software system was "wasted expenditure".
The bank claimed the Flexcube product was "beset with serious technical problems" from the outset in 2007 and only some 3,000 customers out of an expected five million were ever switched over to it in a three-year period.
In March 2010, work on implementing the Flexcube product ceased after which the bank decided to decommission the 3,000 accounts using it. Since then, AIB claims, it had to return to using its existing retail banking system.
It claims all costs and expenditure on the project were "wasted" and it is claiming an estimated €84m for that. It is also claiming damages for loss of profits and damage to goodwill, yet to be calculated.
Yesterday, Mr Justice Peter Kelly granted an application to transfer to the fast-track Commercial Court the bank's action against Oracle Financial Services Software BV (OFSSBV) and Oracle Financial Services Software Ltd (OFSS Ltd), two related companies based in the Netherlands and Germany.