Troubled Irish bank AIB has reached an out-of-court settlement with software giant Oracle in their dispute over a failed application deployment.
Earlier this year, AIB sued Oracle for €84 million, blaming it for the failed implementation of Oracle’s Flexcube core banking system, now known as Oracle Financial services.
AIB had bought Flexcube in 2007 but by 2010, it alleged, the implementation was so far behind schedule that it had to revert to its previous system. Only 3,000 customer records out of a planned 5 million had been migrated by the end of 2009, AIB claimed.
At the time, Oracle "rigorously" denied the allegations, and said it would be "counter claiming against AIB for breach of contract and outstanding fees".
On Friday, the judge presiding over the case said that an agreement had been reached between the two parties and that proceedings had been dropped.
The terms of the settlement have not been disclosed.
Replacing legacy applications seems to be particularly troubling for banks. In October 2011, Tesco Bank announced that it would be delaying migration of its legacy applications to a more modern platform, causing it to downgrade its profit forecast for the year by £40 million.