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Technology Stocks : SAP A.G. -- Ignore unavailable to you. Want to Upgrade?

To: Diver who wrote (2400)	8/27/1998 9:04:00 AM
From: Zoltan Erdos	Read Replies (1) \| Respond to of 3424

SAP rejects charges by bankrupt customer Reuters North American Securities Thursday, August 27, 1998 5:28AM -------------------------------------------------------------------------------- WALLDORF, Germany, Aug 27 (Reuters) - German software group SAP AG said on Thursday that there was no basis for a lawsuit filed against its U.S. subsidiary by a bankrupt drugs distributor. "We believe there is no factual or legal basis for this suit," Michael Junge, head of SAP's legal department, told Reuters. "SAP America Inc and SAP will defend themselves against these charges." On Monday the trustee for FoxMeyer Corp filed a suit alleging "gross negligence" by SAP America "was a significant factor" in the company's August 1996 collapse. It seeks $500 million in damages as well as an unspecified amount in punitive damages. At least one German analyst agreed that the suit was dubious. Klaus Repges at HSBC Trinkaus in Duesseldorf said that FoxMeyer's problems seemed to stem from a series of changes to the project by FoxMeyer. "Moreover, the company was already hit by competition when the implementation began," he wrote in a research note. The trustee, Bart Brown, also filed a suit on Wednesday against Deloitte & Touche LLP, FoxMeyer's former accounting firm, charging it with agreeing to a damaging refinancing plan. In another $500 million suit filed in July, Brown sued Andersen Consulting, which installed the SAP software. On Thursday, SAP shares fell 53 marks or 4.8 percent to 1,050. Germany's blue-chip DAX index was down 3.7 percent.