Test of SaaS hype? US firm sues Icertis over troubled project

In June last year, Pune-based software unicorn Icertis won a four-year, $5.2-million deal to develop a contract management system for a leading US healthcare technology company.

It was a tough selection process, but Icertis, which also has main offices in Seattle, got through, helping the Indian software-as-a-service (SaaS) industry maintain its halo.

Seventeen months on, Icertis is facing a lawsuit over the deal. The US client, Change Healthcare, has accused the startup of breaching contract, misrepresenting product and staff capacities, failing to deliver on promises and causing cost overruns. It has sought damages for the alleged lapses.

Icertis, whose valuation hit $2.8 billion in March this year, disputes the claims and characterisations made in the complaint. A spokesperson said the firm looked forward to presenting its side in court. “Due to the pending litigation, Icertis cannot comment on the merits of the allegations in detail,” the official stated in a response following The CapTable’s query.

The CapTable has a copy of the complaint Nasdaq-listed Change Healthcare filed in the King County Superior Court, Seattle, on November 15.