Cognizant sued by US client over implementation issues

Bengaluru: Crawford & Co, a US claims handling company, is suing Cognizant saying the IT services provider failed to staff, manage and implement a software project at the company and caused it significant problems.

It is rare for a client to sue an IT firm. Issues are typically settled mutually and there are very few instances when it reaches the courts. In the past, WiproNSE -0.52 % was sued by client National Grid and it paid $75 million to settle the case in 2018. In 2016, Tata Consultancy Services paid $26 million to settle a case with US district Orange County.

Crawford’s suit against Cognizant is related to an enterprise resource planning (ERP) project that initially began in 2014 and was plagued by problems that peaked in 2018. ET has a copy of the filing.