SAP to pay $20M to settle criminal charges

September 15, 2011

(AP) -- Business software maker SAP AG on Wednesday said it agreed to pay $20 million to settle criminal charges from the U.S. Department of Justice against a now-defunct subsidiary, TomorrowNow.

The subsidiary was accused of 12 counts of fraud and for stealing documents from rival .'s password-protected websites. SAP had earlier acknowledged the theft and shut down the division. The $20 million penalty is twice what SAP had paid to acquire TomorrowNow in 2005.

The settlement, however, does not resolve a bigger problem for SAP in the case.

A jury awarded Oracle $1.3 billion last year in a verdict against SAP in a civil lawsuit. But on Sept. 1 a judge threw out the award, calling it "grossly excessive." Oracle said it will reject the judge's recommendation for a $272 million award, setting the stage for a new trial.

Walldorf, Germany-based SAP said Wednesday that it is "pleased to have come to an appropriate conclusion" of the . It added that SAP itself was not charged. The plea deal involved TomorrowNow pleading guilty to the charges.

Redwood Shores-based Oracle said in a statement that it has "spent the last four years uncovering SAP's massive copyright theft and SAP finally pleaded guilty in federal court to criminal charges for its illegal scheme."

U.S.-traded shares of SAP shares rose 24 cents, or 0.5 percent, to $50.53, in extended trading Wednesday. Oracle shares rose a penny to $28.16.

Explore further: Shuttered SAP subsidiary charged in Oracle theft

0 shares

Related Stories

SAP won't fight Oracle claims in espionage case

August 6, 2010

(AP) -- In a surprise twist in a corporate espionage case involving two of the world's biggest business software makers, SAP AG on Thursday said it won't fight claims that a subsidiary stole valuable data from rival Oracle ...

$1.3B award against SAP overturned in Oracle case

September 1, 2011

A federal judge on Thursday threw out a "grossly excessive" $1.3 billion verdict that Oracle won against SAP in a landmark intellectual property case, possibly setting the stage for another circus-like showdown between the ...

Ellison: Oracle has $4 billion case against SAP

November 8, 2010

(AP) -- Oracle Corp. CEO Larry Ellison turned up the pressure in an industrial espionage trial Monday by testifying that archenemy SAP AG should have paid $4 billion for licenses to Oracle software.

Recommended for you

WhatsApp vulnerable to snooping: report

January 13, 2017

The Facebook-owned mobile messaging service WhatsApp is vulnerable to interception, the Guardian newspaper reported on Friday, sparking concern over an app advertised as putting an emphasis on privacy.

US gov't accuses Fiat Chrysler of cheating on emissions

January 12, 2017

The U.S. government accused Fiat Chrysler on Thursday of failing to disclose software in some of its pickups and SUVs with diesel engines that allows them to emit more pollution than allowed under the Clean Air Act.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.