Judge: IBM owes In­di­ana $78M for failed au­to­ma­tion

The Washington Times Daily - - NATION -

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.

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