Keycorp and TAB settle $6M claim

Keycorp and TAB settle $6M claim

ASX-listed Keycorp has settled a $6 million damages claim made by TAB Limited relating to the supply of faulty interface cards.

TAB Limited took legal action against Keycorp in the Supreme Court of NSW in August in respect of “a device supplied by Keycorp and deployed by TAB in NSW gaming machines,” installed during 2000 and 2001.

Keycorp claims that the problems were caused by a defective component in the device, manufactured by a US company, which caused the data flow from TAB’s central monitoring system to stall regularly.

The gaming agency is still in the final stages of replacing the cards, and sought compensation from smart card provider Keycorp for these and the cost of the lengthy reinstallation process

“Those terms include a significant part of the claim being paid by the company’s insurer and the company continuing to replace the defective component in the affected devices as part of maintenance services,” Keycorp said.

Keycorp anticipates it will take action against the US component manufacturer and its Australian distributor for both insured and uninsured losses.

The company declined to name the manufacturer or distributor.

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