Magazine article American Libraries

Queens Library Sues SirsiDynix, Alleging "Bait-and-Switch" Fraud

Magazine article American Libraries

Queens Library Sues SirsiDynix, Alleging "Bait-and-Switch" Fraud

Article excerpt

It's Queens Borough Public Library v. Dynix Corporation et al in a lawsuit filed by the library in United States District Court in New York and scheduled for an initial conference November 2. The library seeks more than $5 million in compensatory damages and $10 million in punitive damages, alleging that the Sirsi and Dynix corporations, now combined into SirsiDynix, operated a "fraudulent bait-and-switch scheme" against the Queens Library during its procurement of the Horizon library automation system in 2005.

The Queens Borough Public Library in Jamaica, New York, which lays claim to being the highest-circulating library in the nation, filed the complaint July 2, listing 10 causes of action. The suit states that when the library put out an RFP for a new integrated library system, Sirsi's proposal was rejected "on valid substantive grounds," and the library contracted instead with Dynix, then a totally separate entity. "During the negotiations," the complaint continues, Sirsi purchased Dynix and "proceeded to strip Dynix of the assets needed to perform under the license agreement."

The suit goes on to state that Sirsi, which guaranteed Dynix's performance, "fraudulently misrepresented that it would perform its obligations to provide the contracted for software system when it had no intention or ability to do so. …

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