MOORHEAD, Minn. (KFGO) – American Crystal Sugar Co. is suing a Wisconsin company, claiming it made false and misleading claims about the abilities of a major software package.
In a lawsuit filed in U.S. District Court in Minneapolis, American Crystal says it signed a contract in January with Biwer & Associates of Hartland, Wisc. Biwer was hired to replace an antiquated system that was in use since 1992, but American Crystal says Biwer misrepresented its skills and ability to meet the company’s requirements.
“American Crystal came to the realization that the Project would never be completed successfully with Biwer as the software implementer” according to the complaint. “As such, American Crystal had no choice but to terminate the Agreements.”
Court documents say American Crystal Sugar spent more than $500,000 for a software license, plus approximately $247,000 for hardware and other items. American Crystal says as a result of Biwer’s “fraudulent misrepresentations,” damages have exceeded $1 million.
“In our nearly 40 year history, this is the first time anyone has claimed that Biwer did not fulfill its contract” according to Biwer President, Bob Biwer Jr. “We dispute many of the claims made in the complaint and look forward to presenting our position in court.”
American Crystal is owned by about 2,800 shareholders who raise approximately one-third of the nation’s sugarbeets. Additional acres are contracted in eastern Montana and western North Dakota.
