Irish travel software company Datalex is facing a €25m (US$27m) lawsuit from a US travel services company for fraud and for allegedly engaging in unfair business practices.
Referring to an agreement in 2000 by Datalex to provide and licence booking engine software to them, the Los Angeles-based PSA Inc said Datalex didn’t have ” the technical capability to deliver the working system it touted having”.
PSA also said that it had ratcheted up investment losses amounting to the above sum due to the shortcomings of the system provided.
The suit is a counterclaim after Datalex began a case against PSA in 2001 for breach of contract accusing PSA of failing to pay for all the instalments of the software Datalex had licensed to it.
Datalex said it would vigorously oppose the allegations contained in the countersuit and would present a thorough defence against them.
PSA is making eight separate charges, including breach of contract, unfair business practices and fraud.
The case is due to be heard in the US on 15 April.
Dublin-based Datalex have inked a number of lucrative agreements in recent months including ones with Saudi Arabian Airlines and LasVagas.com.
By Suzanne Byrne
