Lawson Software, customer embroiled in ERP project lawsuit

07.09.2011
Lawson Software is embroiled in the latest instance of an allegedly failed ERP (enterprise resource planning) software project to become public.

CareSource Management Group, a Dayton, Ohio, health care plan administrator, signed a contract with Lawson in August 2010 for an ERP system, but after 10 months it has not moved beyond the testing phase and the project has experienced numerous problems, according to a lawsuit CareSource filed in July in US District Court for the Southern District of Ohio.

Lawson also led CareSource to believe that it was getting a fully-integrated product suite "seamless to the end-user," but the organization later discovered that the system was composed of two modules, one of which was Lawson Talent Management, a new product, according to the suit. CareSource was to be one of the first companies to implement the LTM application, it adds.

As the project proceeded, a series of problems cropped up with data transfers between the LTM module and a financials component, S3, according to the suit. The problems were so severe that at one point, CareSource had 20 open cases with Lawson technical support, it adds.

In June, Lawson revealed to CareSource that some 37 customers "were experiencing the same or similar" problems with the integration, the suit states.

Lawson also failed to provide CareSource with a workable time-and-attendance application after proposing two products that proved unsuitable, it adds.