IBM will ap­peal $78M In­di­ana rul­ing

Northwest Arkansas Democrat-Gazette - - BUSINESS & FARM - — The As­so­ci­ated Press

INDIANAPOLIS — IBM said Mon­day it will ap­peal a rul­ing or­der­ing it to pay In­di­ana $78 mil­lion in dam­ages stem­ming from the com­pany’s failed ef­fort to au­to­mate much of the state’s wel­fare ser­vices. New York-based IBM Corp. said in an email Mon­day that it worked “dili­gently and in­vested sig­nif­i­cant re­sources” to­ward im­prov­ing In­di­ana’s sys­tem for pro­cess­ing wel­fare ap­pli­ca­tions. In­di­ana and IBM sued each other in 2010 af­ter thenGov. Mitch Daniels can­celed the com­pany’s 10-year, $1.3 bil­lion con­tract af­ter nu­mer­ous com­plaints. An at­tor­ney for the state, Peter Rusthoven, said the judge’s rul­ing “vin­di­cates” the state’s ac­tions. The In­di­ana Supreme Court ruled last year that IBM breached its con­tract and di­rected the trial court to cal­cu­late the dam­ages.

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