MUMBAI: Oracle Financial Services Software Ltd , majority owned by U.S.-based Oracle Corp , said on Thursday an Irish client has filed a lawsuit against the company and one of its units alleging breach of contract, misrepresentation and negligence.
Shares of the software services firm, which the market values at $4.01 billion, dropped as much as 5 percent to 2,063.45 rupees in an upbeat Mumbai market. At 12.11 p.m., the stock was down 4.32 percent at 2,080.05 rupees.
The Irish client, Allied Irish Banks Plc, which has filed the suit in the Irish High Court , is claiming damages of more than 84 million euros, Oracle Financial said.
"Sentiment wise, it's a negative, but going forward it might not be that big a deal," an analyst with a local brokerage said.
The issue is likely to be resolved out of court at a fraction of the cost being claimed as damages, as in the Satyam-Upaid case, said the analyst, who did not wish to be named.
In Dec. 2009, Mahindra Styam Ltd paid $70 million to Britain-based Upaid Systems Ltd in a patent suit settlement.
Mumbai-based Oracle Financial, formerly i-felx Solutions, said it is rigorously defending all allegations and will also counter-claim against the Irish bank for breach of contract and outstanding fees.
Shares of the software services firm, which the market values at $4.01 billion, dropped as much as 5 percent to 2,063.45 rupees in an upbeat Mumbai market. At 12.11 p.m., the stock was down 4.32 percent at 2,080.05 rupees.
The Irish client, Allied Irish Banks Plc, which has filed the suit in the Irish High Court , is claiming damages of more than 84 million euros, Oracle Financial said.
"Sentiment wise, it's a negative, but going forward it might not be that big a deal," an analyst with a local brokerage said.
The issue is likely to be resolved out of court at a fraction of the cost being claimed as damages, as in the Satyam-Upaid case, said the analyst, who did not wish to be named.
In Dec. 2009, Mahindra Styam Ltd paid $70 million to Britain-based Upaid Systems Ltd in a patent suit settlement.
Mumbai-based Oracle Financial, formerly i-felx Solutions, said it is rigorously defending all allegations and will also counter-claim against the Irish bank for breach of contract and outstanding fees.
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