Certified Collectibles Group claims Globant failed to complete software project.
SARASOTA — A local company that authenticates collectibles is seeking millions of dollars in damages from international tech giant Globant in a dispute over the cost and completion of a key software project.
Certified Collectibles Group claims it contracted with PointSource, a company Globant later acquired, to provide a new enterprise resource planning software system that would run CCG's core operations.
But after three years and more than $5 million paid in fees, CCG says it has no system, and Globant is now demanding another $5 million and two more years to complete the project.
"After this shocking demand from one of Globant’s most senior executives, it later became clear that very little work was completed despite Globant’s repeated assurances that the project was on track," CCG chief executive officer Steven R. Eichenbau said in a news release.
Globant S.A., the Luxembourg-based parent company, and Globant LLC, its U.S. subsidiary, had not filed a response to the lawsuit as of Tuesday.
"The company believes the claims against it are factually wrong, exaggerated and without merit," a Globant spokesperson said in an email to the Herald-Tribune. "The company intends vigorously to defend its position."
CCG is made up of seven companies that certify and grade everything from coins and stamps to comic books and memorabilia. It employs about 265 at its Sarasota headquarters and also has offices in London, Munich, Shanghai and Hong Kong.
One of those companies, Numismatic Guaranty Corp. in Sarasota, last year authenticated for auction an assortment of items owned by Apollo 11 astronaut Neil Armstrong, including items he carried to the moon 50 years ago last month.
The 68-page lawsuit, filed last week in U.S. District Court in Tampa, seeks to recover "tens of millions of dollars" in damages from what it calls Globant's "extortionate bait-and-switch."
"Had Globant disclosed to CCG in November 2017 that the project would in fact cost $8 million in additional fees and take an additional four years to complete, CCG would have canceled the project and proceeded with a different vendor," CCG attorney Maria H. Ruiz stated in the suit. "Instead, Globant remained silent, inducing CCG to enter into the contract and to pay nearly $2.7 million in additional fees, all the while concealing that it would have to start the project over from scratch."
CCG said the new system was "a central component" of its growth strategy. It was originally expected to go live in mid-2017 and cost $1.8 million.
The company is represented by Ruiz, Mark P. Ressler and R. Tali Epstein of the Kasowitz Benson Torres LLP law firm in New York City.