Montclair State University Accuses Oracle of Lies, Extortion

The Montclair State University has levied some serious accusations against enterprise software giant Oracle over a botched ERP deployment.

The university, back in 2009, had decided to commission Oracle for a $20 million deployment of its PeopleSoft enterprise resource planning (ERP) solution. The deployment did not go as planned and the university decided to file a lawsuit for damages.

Now, according to an article on Information Week, the university has amended its lawsuit, claiming that Oracle knowingly overestimated the capabilities of the solution and under estimated the deployment resource requirement in order to win the contract.

Oracle was tasked to replace a 25 year old system that the university was using with the hope that students and teachers will have better access to academic resources. The university had agreed to pay $4.3 million for the software and $15.7 million in implementation fee.

The Montclair State University, the second largest in the New Jersey state, claimed in the lawsuit that Oracle was not able to implement the solution on time and walked out of the deal when the university refused to pay it more money than already agreed upon.