Software maker PeopleSoft reported on Monday that anyone that tries to buy the company could be on the hook for nearly $2 billion in payouts to its customers. That estimate was based on sales through March 31, the company said. PeopleSoft created the liability by including a money-back guarantee clause in many of its customer contracts over the past year. It began the so-called customer assurance program as part of its defense against a $9.4 billion hostile takeover bid launched by Oracle last June.
Although the U.S. antitrust regulatorsto block the merger, PeopleSoft has continued the guarantee program, which is set to expire June 30.