NewsPublic Affairs / August 7, 2017

Judge: IBM Owes Indiana $78M For Failed Welfare Automation

The Marion County judge's ruling was published Monday, nearly six months after hearing arguments in the case.Indiana Supreme Court, Indiana, IBM, welfare2017-08-07T00:00:00-04:00
Judge: IBM Owes Indiana $78M For Failed Welfare Automation

FILE - In this April 26, 2017, file photo, the IBM logo is displayed on the IBM building in Midtown Manhattan, in New York. In a judge's ruling dated Friday, Aug. 4, 2017, IBM Corp. owes the state of Indiana $78 million in damages stemming from the company's failed effort to automate much of Indiana's welfare services. Indiana and IBM sued each other in 2010 after then-Gov. Mitch Daniels canceled the company's $1.3 billion contract.

AP Photo/Mary Altaffer, File

INDIANAPOLIS (AP) — A judge has ruled that IBM Corp. owes Indiana $78 million in damages stemming from the company's failed effort to automate much of the state's welfare services.

The Marion County judge's ruling Friday came nearly six months after hearing arguments in the case. The ruling was published Monday.

Indiana and IBM sued each other in 2010 after then-Gov. Mitch Daniels cancelled the company's $1.3 billion contract to privatize and automate the processing of Indiana's welfare applications following numerous complaints.

The Indiana Supreme Court ruled last year that IBM breached its contract. The justices affirmed a lower court's award of nearly $50 million to IBM in state fees, but that ruling allowed Indiana to seek more than $172 million in damages from IBM.

 

 

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