Paychex has paid $7 million to settle several claims stemming from its decision to shut down its Rapid Payroll services, according to information the company has filed with the Securities and Exchange Commission.
The suits in federal and state courts were initiated after Paychex stopped supporting Rapid Payroll's services effective August 2002. Paychex developed Rapid Payroll through its acquisition of Olsen Computer Systems in fiscal 1997. Paychex initially faced 32 suits brought by some of its 76 Rapid Payroll licensees, who obtained a preliminary injunction from a federal court on July 5, 2002, ordering Paychex to continue supporting the software. The court has now ordered that injunction to be lifted in April.
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