Gemalto: €152 million PPA claim disproportionate

Gemalto, the previous producer of Estonia’s ID cards, has called the Police and Border Guard Board’s (PPA) decision to take the company to court unfortunate, and asserted that the PPA’s €152 million claim is disproportionate in size.

The PPA submitted a claim to Harju County Court on Thursday regarding a breach of contract with regard to the generation of private keys for ID cards outside of the cards’ chips.

“Gemalto wishes to explain that [the company] cannot be held responsible in any way for this solution, as it has constantly negotiated for the conclusion of a peaceful compromise agreement in extreme confidentialty and good faith,” the company said. “Thus Gemalto deeply regrets the PPA’s new approach to take the matter to court.”

Gemalto added that the company cannot comment on the claim itself, as currently it can only rely on information being reported in the media, but nonetheless stresses that the claim announced by the PPA on Thursday is “entirely disproportionate compared to what the PPA itself had offered as a deal.”

The card producer stressed that it has not breached its contractual obligations, which it will continue to fulfil.

Gemalto likewise confirmed that the company has demonstrated willingness to resolve all claims related to the ID card supply contract out of court.

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