SAP, Deloitte Face Revived Fraud Suit Over San Diego IT Contract

SAP America Inc. and Deloitte Consulting LLP must faced revived claims under California’s False Claims Act after a state appellate court said a former employee adequately alleged the companies made false statements during the execution of an IT contract.

San Diego hired SAP to design, draft a request for proposals, and evaluate bids for a new software system to track the city’s physical assets, including roads and sidewalks.

SAP ultimately recommended Deloitte for the $20 million contract to implement the new system.

The city later contracted SAP to deploy the software, build a database, and provide quality assurance, among other ...