Waste Management's suit lodged an against SAP, including a charge that company executives used a "fake" software demonstration to trick the trash hauler into believing SAP's products would meet its needs.

Waste Management had been seeking more than $1 billion in damages from SAP, but the parties entered mediation in March 2010 and for the $80 million, according to SAP's complaint against Swiss Re, which was filed last month in a Delaware court. The action was removed last week by Swiss Re to U.S. District Court for the Eastern District of Pennsylvania.

SAP had told Swiss Re, one of its liability insurance providers, that the settlement was imminent, and a policy SAP acquired from Swiss Re in 2007 granted the company ¬15 million ($18.5 million) in coverage, its complaint adds.

Swiss Re didn't object to the settlement but also wouldn't commit to paying its share of the $80 million, according to SAP.

At one point in February 2011, Swiss Re's law firm told SAP that there were "several arguments" it could make "to avoid providing insurance coverage to SAP" under the policy's terms, the complaint states.