Andersen Consulting Sues CSC

Andersen Consulting has filed suit against Computer Sciences Corp. over what it claims is more than $10 million in unpaid invoices.

The suit, filed in New York State Supreme Court, stems from a 1996 contract between J.P. Morgan and CSC, Andersen Consulting, AT&T Solutions, and Bell Atlantic Network Integration. Known collectively as the Pinnacle Alliance, these outsourcers provide IT services and support to Morgan Guaranty Trust, a subsidiary of J.P. Morgan. Under the terms of the $2.1 billion, seven-year contract, CSC is the primary outsourcer, while the others are subcontractors. CSC is responsible for distributing payments to the subcontractors.

Both Andersen and J.P. Morgan contend the suit will not impact the outsourcing arrangement. "The actions we've taken will not affect our relationship with J.P. Morgan," says Andersen spokeswoman Roxanne Taylor. "We will continue to provide quality service to our client." Andersen has been providing Morgan with application development and maintenance services.

Ned McCormack, a spokesman for J.P. Morgan, says his company's relationship with both CSC and Andersen will remain intact. "This is a contract billing dispute between CSC and Andersen and will have no impact on the services both companies provide Morgan," McCormack says.

A CSC spokesman says the company had no comment on the suit.