The Indiana Court of Appeals has reversed a lower court's decision in a case involving an IBM Corp. (NYSE: IBM) contract with the state. The appeals court found the company breached its welfare system privatization contract. In the majority opinion, Chief Judge Nancy Vaidik said IBM failed to “provide welfare services to our poorest in a timely, efficient, and reliable manner within federal guidelines.” The case now heads back to Marion Superior Court to determine IBM's fees and what the state is owed in damages.

The appeals court did uphold the previous court's award of $40 million in assignment fees and more than $9.5 million for equipment to IBM.

You can read the full COurt of Appeals decision by clicking here.

In 2006, Indiana entered into a 10-year, $1.3 billion deal with the technology provider to attempt to modernize the Indiana Family and Social Services Administration's welfare system.

IBM is seeking million of dollars in fees.

Source: The Indiana Court of Appeals

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