IBM Vows Appeal After $128M Ruling

Posted: Updated:
INDIANAPOLIS -

The state of Indiana has been awarded $128 million in damages for a long-running lawsuit with IBM. The case involves what the state has maintained was a breach of contract by the software provider for welfare system modernization services for the Indiana Family and Social Services Administration. IBM issued a statement following the ruling, saying it will continue to fight the decision.

The company's statement reads:

IBM worked diligently and invested significant resources in its partnership with FSSA to help turn around a welfare system described at the time by Indiana's governor as one of the worst in the nation. IBM will appeal this decision which is contradicted by the facts and the law.

The state terminated its contract in 2009, citing IBM's poor performance. The initial, 10-year contract was signed in 2006 and valued at $1.3 billion. IBM was seeking back payment once the state pulled out of the deal. Last year, the case was sent back to Marion Superior Court to set damages following an Indiana Supreme court ruling that sided with the state.

A statement by the state's legal representation, John Maley and Peter Rusthoven of Barnes and Thornburg in Indianapolis, says:

We are very pleased the court awarded $128 million in damages for IBM’s failure to keep the important promises it made to the State of Indiana. This has been a long, tough battle with a big corporation that refused all along to take responsibility for its poor performance. This hurt Hoosier families most in need, who depend upon the help of the Family and Social Services Administration. Today's ruling is another victory for those families, for our State, and for all our citizens and taxpayers. It also vindicates the consistent determination of former Governors Mitch Daniels and Mike Pence and now Governor Eric Holcomb that IBM must be held responsible for not doing what it promised.

The state's payout includes more than $78 million in damages and 8 percent interest from the judgement date for a total of $128 million.

  • Perspectives

    • Ball Cap, Bottle Cap... Market Cap?

      What size is your market cap? Prudent investors know that company size is an important factor when building a portfolio. Large established companies tend to be more stable and predictable, while small companies with unproven potential can be risky investments. Is your market cap a good fit for you? Confused about market cap? Here's what you need to know...

    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • Millions Heading to Hoosier Airports For Improvements

      Nearly three dozen Indiana airports have received funding through a federal program. The grants from the Federal Aviation Administration's Airport Improvement Program can be used for work including taxiway and runway improvements, snow removal equipment and terminal building construction. The amount distributed nationwide in the most recent rounds of funding totals $541.5 million. The list of Hoosier facilities securing funding includes...

    • GE Wraps-up Fort Wayne Campus Sale

      The $5.5 million sale by General Electric of its former Fort Wayne campus is complete. The Journal Gazette reports RTM Ventures, the redevelopment group made up of partners from Baltimore, Indianapolis and Decatur, could begin remediation efforts by year's end. Plans for the more than 30-acre campus include some $300 million in development funded through public and private investment.

    • WATCH: 'Can Do' Attitude Fuels Jasper

      When asked what's behind more than $215 million in economic development projects, Mayor Terry Seitz didn't hesitate. "If you want something done, have someone from Jasper on your board or in your group, and it'll get done," said Seitz during an interview on Inside INdiana Business Television. Next month, ground will be broken for an 80-room Marriott Fairfield Inn & Suites Hotel, part of the $30 million River Centre mixed-use project along the Patoka River.

    • Colts Hire Campbell as VP of Communications

      The Indianapolis Colts have hired Steve Campbell as vice president of communications. He has more than 25 years of experience working at all levels of media, community programming and public service. Campbell currently is president of Campbell Strategies LLC, a local communications and strategy firm providing media counsel to business, nonprofit and public sector clients. He founded the firm in 2009.

    • Barnes & Thornburg Names Merkel COO

      Barnes & Thornburg LLP has named Steven Merkel chief operating officer. He is a retired U.S. Army colonel who joins the firm after serving as chief of operations for the United States Military Academy. Earlier operational roles held by Merkel include brigade commander at the U.S. Military Academy; chief of operations for a multinational security force in Kabul, Afghanistan and chief of operations for the U.S First Army.