Oakton has commenced legal action against the traffic infringement and management branch of Tenix Solutions, seeking $12 million in damages.
The IT services company's move followed the termination of a subcontract it had with Tenix, which had recently filed a claim for $19.36 million in damages against Oakton.
Oakton issued a statement to the Australian Stock Exchange late this afternoon, informing shareholders of the action.
"Oakton alleges that Tenix wrongfully repudiated a subcontract for the provision of services by Oakton relating to the design, building and testing of software to be used by Tenix as part of an infringement management and enforcement system Tenix was required to build and operate under a contract between Tenix and the State of Victoria," the statement said.
The legal action was lodged in the Victorian Supreme Court today. Oakton has also rejected Tenix's $19.36 million claim.
Neither company had responded to requests for comment at the time of publication.