Judge: IBM owes Indiana $78M for failed automation
INDIANAPOLIS | IBM Corp. owes Indiana $78 million in damages stemming from the company’s failed effort to automate much of the state’s welfare services, a judge has ruled in a longrunning dispute.
Marion Superior Court Judge Heather Welch issued the ruling dated Friday, nearly six months after she heard arguments from attorneys for the state and IBM.
The Indiana Supreme Court ruled last year that IBM had breached its contract and it directed the trial court to calculate the damages.
Indiana and New York-based IBM sued each other in 2010 after then-Gov. Mitch Daniels canceled the company’s $1.3 billion contract to privatize and automate welfare-application processing.
Under the deal, an IBM-led team of vendors worked to process applications for food stamps, Medicaid and other benefits. Residents could apply for the benefits through call centers, the internet and fax machines.