Britain's BSkyB files lawsuit against EDS

Pay-TV company BSkyB has filed a claim against US-based information technology provider Electronic Data Systems that alleges "…

Pay-TV company BSkyB has filed a claim against US-based information technology provider Electronic Data Systems that alleges "deceit, negligent misrepresentation and breach of contract".

The claim, which BSkyB said was "for a material amount", relates to an EDS contract to build and implement a customer call centre for Sky that was terminated in 2002.

BSkyB hired EDS in November 2000 in a deal worth about $111.7 million over two years to provide systems to help it handle call-centre inquiries.

The action is the latest in a series of legal woes faced by EDS, which has endured half a dozen problematic contracts and a formal investigation by the Securities and Exchange Commission.

Sky shares were up 2 per cent at 481 pence at 11:54 a.m. Shares of EDS, listed on the New York Stock Exchange, had not yet begun to trade.

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