The Regents of the University of California v. Computer Methods International Corp. et al., Case No. CGC-13-531850 (San Francisco Superior Court): On June 3, 2013, the Regents of the University of California (the University) sued Canadian software company Computer Methods International Corp. (CMIC) and its subsidiary, Computer Facilities Services Inc. (CFSI), alleging that the defendants violated the California False Claims Act (CFCA) when they misrepresented the stability of the software program they contracted to provide to the University. The University also alleges claims for fraud, breach of contract and breach of express and implied warranties.
In 2010, the University awarded to the defendants a contract to provide Enterprise Resource Planning (ERP) software to manage various construction projects at the University of California, San Francisco. The University claims that when the parties executed the purchase agreement in December 2010, the defendants falsely represented that they would provide “fully integrated” ERP software meeting the University’s requirements for a stable and secure platform. The defendants allegedly represented that they would implement CMIC’s “Open Enterprise v2006” ERP software, but then later announced they would instead implement their newest (and allegedly untested) “Open Enterprise v10x.” The University claims that this new software was defective and “inherently unstable” and caused numerous delays and costs, which led the University to terminate the contract in November 2012.
According to the complaint, the invoices the defendants submitted to the University pursuant to the contract were false because the defendants knew but did not disclose that the v10x software was unstable and, as of 2009, still “under development.” The University seeks treble damages and civil penalties under the CFCA.