Whatever truth there is to the idea that a single mobile app brought the Iowa presidential caucuses to a screeching halt, one thing is clear. Software meltdowns can have catastrophic consequences. In today’s economy, virtually every major company, from consumer product makers to business-to-business service providers, powers its business with complex and expensive software. And over the past year, companies across the country—in scores of different sectors including finance, technology, aviation and health care—have been embroiled in high-stakes lawsuits about the software their businesses depend on. These lawsuits—brought by private actors and governmental agencies—have similarities, namely, hotly disputed allegations about how the software works, and eye-popping claims about the damage caused by faulty software.  

The disgruntled software buyers in these lawsuits often seek damages well beyond the already large software sticker-price. And they often include allegations that the faulty software crippled a plaintiff’s business operations. Just last year, Hertz, the rental company, sued Accenture after Hertz spent $32 million dollars for Accenture to develop an e-commerce platform and apps to “transform the digital identity” of Hertz’s rental car business. Hertz says the software failed, and it wants its money back and more. Likewise, the city of Jackson, Mississippi, recently sued Siemens contending that Siemens’ faulty software failed to accurately measure how much water Jackson citizens consumed, causing nearly half a billion dollars in damages.     

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