News

CSG on the Hook for $119.6M to Comcast

10/29/2003 10:25 AM Eastern

An arbitrator in a contract dispute between CSG Systems International Inc. and Comcast Corp. has reaffirmed that CSG must pay $119.6 million in damages to Comcast.

The judge ruled earlier this month that the billing and customer-care vendor had violated the most-favored-nations clause in the contract Comcast inherited when it acquired AT&T Broadband.

CSG executives asked for reconsideration of the award, arguing that the arbitrator made a mathematical error that could result in a $50 million reduction in damages. But the award was upheld Monday, according to CSG's third-quarter report.

CSG has already paid $65 million to Comcast. It did not state when it will pay the remaining $55 million, but the company added that it anticipated an income-tax benefit because it paid the damages.

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