Evansville-based Old National Bank is suing financial technology firm Backbase over what Indiana’s largest homegrown bank is describing as Backbase’s “unmitigated failure” to fulfill $18 million in software contracts for a Chicago bank Old National has acquired. The lawsuit is filed in the District Court in Indiana in the U.S., seeking a court order requiring Backbase to comply with its contractual obligations and pay the bank more than $18 million in damages.
According to the lawsuit, Old National acquired the Chicago bank in late 2018 and began the process of integrating the operations of the two banks. As part of this process, Old National contracted with Backbase to develop and deploy a new core banking platform for the Chicago bank. As part of the contract, Backbase was to provide software and services to integrate the two banks’ back-end operations.
However, the lawsuit alleges that Backbase failed to deliver the software and services as promised and that the company’s “unmitigated failure” resulted in significant financial losses and disruption to Old National. In addition, the bank claims that Backbase’s performance was so poor that Old National had to hire a third-party software development firm to complete the project.
The lawsuit seeks a court order requiring Backbase to comply with its contractual obligations and pay Old National more than $18 million in damages. The bank also seeks punitive damages and legal fees associated with the lawsuit.
Evansville-based Old National Bank is suing financial technology firm Backbase for what the bank is describing as Backbase’s “unmitigated failure” to fulfill $18 million in software contracts through filing the lawsuit in District Court in Indiana of the U.S., seeking a court order requiring Backbase to comply with its contractual obligations and pay Old National more than $18 million in damages. The lawsuit has caused a stir in the financial technology industry, and many experts are watching closely to see how it turns out.