Japanese Bank Sues IBM over Upgrade

Published March 07, 2008, 2:00 a.m. EST

Updated March 06, 2008, 6:09 p.m. EST

1 Min Read

A Japanese banking company has sued International Business Machines Corp. over problems related to a computer upgrade project.

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Suruga Bank Ltd. filed the suit Thursday in Tokyo, seeking $107 million in damages for failing to complete the installation of a new operations system, according to a statement Suruga Bank submitted to the Tokyo Stock Exchange.

IBM is aware of the filing and has no intention to pay compensation to the banking company, said Kazuhiro Kaneko, an IBM spokesman in Tokyo.

Suruga, a regional firm that operates in the Tokyo area, said it hired IBM in September 2004 to upgrade its main system. It had to halt the project because of failures by IBM, according to Suruga spokesman Hiroaki Momose, who would not provide additional details on the dispute.

Mr. Kaneko said that Suruga had asked IBM to provide services that were not included in the contract.

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