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Software firm will pay CSU $4.25M settlement



Published: Sat, February 26, 2005 @ 12:00 a.m.



CLEVELAND (AP) -- A software firm has agreed to pay Cleveland State University $4.25 million to settle a lawsuit over computer problems that delayed financial aid to thousands of students.

The university sued PeopleSoft Inc. and a consultant last year in Cuyahoga County Common Pleas Court. Records from the court show the suit was for $510 million, but university lawyer Sonali Wilson said the school actually sought about $50 million.

Cleveland State claimed students often waited months for financial aid because of computer problems that also hindered other services for more than two years, beginning in 1998. The school announced the settlement Friday.

PeopleSoft was acquired last month by Oracle Corp. A company spokeswoman declined comment on the settlement.

Cleveland State trustees will determine how to use the settlement. University President Michael Schwartz hopes the money goes to scholarships for students.

"They are the ones who paid the biggest price," he said.




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