AIB has reached an out-of-court settlement with Oracle over a bungled core banking implementation that the Irish bank claimed had cost it EUR84 million in "wasted expenditure".
AIB initiated legal action against Oracle in January over allegations that a Flexcube implementation by the vendor was "beset with serious technical problems" from the outset in 2007. By 2009, the bank had only switched over 3000 customers to the new platform out of an expected five million.
In March 2010 the roll out of Flexcube was abandoned with AIB forced to stick with its old system. It claims that Oracle had advised the bank that it was ceasing development of Flexcube on IBM's z/DB2 platform for western banks, leaving AIB as the sole supporting bank for the platform.
The bank claims it lost around EUR84 million through the project which it was induced to embark on by "misrepresentation" from the vendor. It was seeking EUR84 million damages for misrepresentation and for breach of contract and negligence, plus an unspecified amount of damages for loss of profits and goodwill.
Details of the settlement have not been disclosed.