SEI pays $4.25 million to settle Vermeg contract dispute

SEI pays $4.25 million to settle Vermeg contract dispute

SEI Investments has paid $4.25m to settle a lawsuit filed by Vermeg over the supply and implementation of the Tunisian-based vendor's Megacor corporate actions software.

Vermeg filed the complaint at the US District Court in Pennsylvania in April after SEI terminated a software licence and services contract for its corporate actions processing technology, Megacor.

SEI became Vermeg's first customer in the US after it agreed to add the corporate actions module to its wealth management platform.

But SEI terminated the deal and claimed that the Vermeg software failed to meet unspecified "performance and functionality criteria" under the contract.

As part of the settlement and mutual release agreement, SEI has made a one-time payment to Vermeg of $4.25 million, which it will expense in the fourth quarter 2005.

SEI says the payment is for services previously rendered and for a perpetual pre-paid licence to use the software in its portfolio accounting system.

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