Ross Systems Announces Update On Sunshine Mills Lawsuit
Ross Systems, Inc. announced today it has filed a motion under Rule 2 of the Alabama Rules of Appellate Procedure with the Supreme Court of the State of Alabama seeking relief from Alabama’s requirement to post an appellate bond in the amount of 125 percent of the $61.3 million judgment against Ross in the Sunshine matter, and requesting that the Supreme Court reduce Ross’ bonding requirement, while the Sunshine matter is on appeal, to an amount significantly less than the current bond requirement of approximately $77.0 million.
The Rule 2 motion is Ross Systems’ final legal remedy under Alabama law seeking to stay or suspend collection efforts related to the Sunshine Mills judgment while the case is on appeal. On April 7, the Franklin County Circuit Court rejected Ross Systems’ post trial motions to, among other things, stay the execution of the judgment pending the appeal.
As previously disclosed, Sunshine Mills, Inc., a major employer in Franklin County, Alabama sued Ross for alleged fraud related to the sale and implementation of a Ross ERP system in early 2005. The jury awarded a total of $61.3 million in damages to Sunshine Mills, of which approximately $16 million were compensatory damages that were not based on actual damages, but rather the loss of future anticipated savings, and $45 million of which were punitive damages. Despite the plaintiff’s allegations of damages, Sunshine Mills continues to use Ross’ software, was current on maintenance through the end of 2010, and has bought additional services from Ross to help them in their operations.
Ross strongly denies the allegations of Sunshine Mills, and is appealing the verdict to the Supreme Court of the State of Alabama.About Ross Systems Ross Systems was acquired by CDC Software (NASDAQ: CDCS) in 2004 and is a business unit of this global provider of hybrid enterprise software applications and services. CDC Corporation (NASDAQ: CHINA) owns approximately 85 percent of CDC Software.
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