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US State Sues IBM Over $170 Million Jobless Claims Contract

The state accuses IBM of breach of contract, and seeks undisclosed damages.
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The lawsuit says IBM was paid $170 million, but delivered a failed project.
The lawsuit says IBM was paid $170 million, but delivered a failed project.

Highlights

  1. Pennsylvania government has sued IBM over a 2006 contract
  2. The lawsuit says IBM has delivered a failed project
  3. The state accuses IBM of breach of contract, and seeks damages

Harrisburg: Pennsylvania Gov. Tom Wolf's administration has sued IBM, saying the company failed to deliver on a 2006 contract to build an integrated system to process unemployment claims.

The lawsuit, filed yesterday, says the computer company was paid $170 million, but delivered a failed project when the state let the contract expire in 2013. The suit says the project was nearly four years behind schedule and $60 million over budget.

The state accuses IBM of breach of contract, and seeks undisclosed damages.



A telephone message left with Armonk, New York-based IBM wasn't immediately returned.

The suit comes amid a fight between the Democratic governor and Republican senators over how the unemployment compensation system is run and funded.

It was filed in Dauphin County by a private law firm representing Pennsylvania.



(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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