National Class Certified in Year 2000 Class Action Filed Against Sage Software, Inc.

Business Wire


A national class of users of Sage Software Inc.’s M*A*S 90 computer software program was certified on May 27, 1999 by the Orange County Superior Court, according to the law firms of Sherman, Silverstein, Kohl, Rose & Podolsky and Bernstein, Litowitz, Berger & Grossmann LLP. The Class consists of M*A*S 90 users who purchased the software from 1990 through February of 1998. Sage estimates the size of the class to be in excess of 40,000 users nationwide.

This class action lawsuit was filed against Sage Software, Inc. in the Orange County Superior Court in September, 1998, alleging that Sage violated the California Business & Professions Code ss. 17200, et seq., and breached certain express warranties when the company marketed non-Year 2000 compliant computer software versions of the M*A*S 90 software, without disclosing that the software was unable to process dates after December 31, 1999.

M*A*S 90 is a computer software program used by tens of thousands of businesses throughout the United States. The M*A*S 90 software is an integrated accounting system consisting of more than 28 separate application modules which form a comprehensive accounting system. M*A*S 90 software is used to plan budgets, track inventory, and manage accounts payable and receivable. Sage advertises M*A*S 90 as the most comprehensive character-based internal accounting and management information system in the business software industry.

According to the Complaint, Sage sold non-Year 2000 compliant software programs to these businesses even though the company knew, or should have known, that the software would not be able to process Year 2000. Since the filing of the Complaint, Sage filed a Demurrer to the Complaint which was overruled by the trial judge.

“In marketing M*A*S 90, Sage touted its software as being able to “handle the needs of your business through the 90s and beyond” said Harris L. Pogust, a partner with Sherman, Silverstein, Kohl, Rose & Podolsky, “The product, however, was unable to live up to those representations.”

“The agreement of the parties to certify a national class marks the first such agreement in an ongoing Y2K litigation,” according to Jeffrey A. Klafter, a partner with Bernstein Litowitz Berger & Grossmann LLP. “The case can now proceed to trial for the benefit of all the members of the Class.”

Bernstein Litowitz and Sherman Silverstein were lead counsel in the recently settled case of Courtney v. Medical Manager, one of the first Year 2000 class action settlements in the country.

Bernstein Litowitz Berger & Grossmann LLP prosecutes complex class actions, nationwide, on behalf of individuals and investors in the securities fraud and consumer fraud areas, as well as major employment discrimination cases. The firm has established a Year 2000 Practice Group under the direction of Jeffrey A. Klafter and Seth R. Lesser, and is currently litigating several other Year 2000 cases.

Sherman, Silverstein, Kohl, Rose & Podolsky is a New Jersey firm which handles litigation in federal and state courts, including complex class actions and other litigation involving consumer fraud. The firm also represents in excess of 1,000 physicians throughout New Jersey, Pennsylvania and Delaware. The firm has established a Year 2000 Practice Group under the direction of Harris L. Pogust and Allan C. Milstein. In addition to litigating Year 2000 cases, Sherman Silverstein counsels its clients in ways to avoid Year 2000 liability.

For more information about the Sage lawsuit or other Year 2000 litigation issues, you may call Harris L. Pogust, a partner at Sherman, Silverstein, Kohl, Rose & Podolsky who may be reached at (856)662-0700 or at the firm’s web site at


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