Jury slams SAP $1.3 billion in TomorrowNow lawsuit

Jury slams SAP $1.3 billion in TomorrowNow lawsuit

Summary: Oracle awarded $1.3 billion in its case against TomorrowNow and SAP. What next?


In making a record award, either the jury in the Oracle v TomorrowNow case wanted to get home early for Thanksgiving or Oracle's lawyers and witnesses dazzled them into believing that Oracle is entitled to close on the full value of the license that Oracle claims it would have wanted to be paid.

The figure of $1.3 billion the jury awarded is an order of magnitude higher than any previous award.

The jury were given the choice of making an award based upon a fair market value license or lost profits. If the jury had looked at lost profits then it is difficult to conceive how they could have awarded anything approaching this amount. Even looking at fair market value, one wonders how they managed to compute such a figure given the number of customers TomorrowNow actually secured and the value of those contracts.

You can be sure that Oracle will milk this for all its worth but in the meantime SAP will almost certainly appeal the verdict. SAP has already expressed 'disappointment' according to the Wall Street Journal.

While SAP would not have difficulty in settling this amount, it will crimp the company's ability to expand through any planned acquisitions, despite it has recently refinanced its core €1.5 billion revolving credit facility.

In the meantime, the verdict by the Twitterati was simple: '#ouch.'

Topics: SAP, Legal

Dennis Howlett

About Dennis Howlett

Dennis Howlett is a 40 year veteran in enterprise IT, working with companies large and small across many industries. He endeavors to inform buyers in a no-nonsense manner and spares no vendor that comes under his microscope.

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  • RE: Jury slams SAP $1.3 billion in TomorrowNow lawsuit

    Thou shall not steal - Shouldn't have been that hard to remember !!
  • RE: Jury slams SAP $1.3 billion in TomorrowNow lawsuit

    Aggressively taking away other companies customers, IP, and other business assets is more under the heading of "business as usual" than theft.<br><br>It is just rare that both sides of the courtroom are represented by companies large enough to foot the bills, and stupid enough to actually progress to court rather than mutaully agreeing a settlement.<br><br>I've been follwoing the case since it started, and even playing in the ERP space, i have found the arguments hard to follow (And Ellison's testimony left me feeling so utterly dumbfounded that i thought Oracle's case would fail and SAP would be awarded costs, to be honest)<br><br>This decision has me scratching my head.. maybe SAP's lawyers fell down badly on the jury-profiling and selection, and let one or two wild-cards sneak through...
    Nic Harvard
  • RE: Jury slams SAP $1.3 billion in TomorrowNow lawsuit

    News flash: Former TomorrowNow executives have already updated their resumes with: "Cost savings of $700M realized."
  • RE: Jury slams SAP $1.3 billion in TomorrowNow lawsuit

    Insane amount of money... I'd take 1% if they gave it to me
  • RE: Jury slams SAP $1.3 billion in TomorrowNow lawsuit

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