Indiana News

Court: Indiana owes IBM nearly $50M in welfare fight….

INDIANAPOLIS (AP) – The Indiana Court of Appeals says IBM Corp. failed to deliver its part of a deal to privatize the state's welfare system, but the company is still entitled to nearly $50 million in fees that the state agreed to pay.

Thursday's decision sends the four-year-old dispute between IBM and the Indiana Family and Social Services Administration back to the trial judge to work out the details.

The state court ruled 2-1 that IBM failed in its most important task – to provide timely services to Indiana's needy.

The judges said the state owes IBM nearly $50 million in agreed-upon fees, but not nearly $13 million for terminating the contract early.

The state and the company sued each other in 2010 after then-Gov. Mitch Daniels canceled the $1.3 billion contract.

 

Related posts

Indiana listed high in business climate study

Darrin Wright

Three people shot at bar on Ash Road in Osceola, search for suspect underway

Jon Zimney

Teachers uneasy about proposed Indiana diploma standards

Network Indiana