IBM to appeal order to pay Indiana $78 million

FILE - In this April 26, 2017, file photo, the IBM logo is displayed on the IBM building in Midtown Manhattan, in New York. In a judge’s ruling dated Friday, Aug. 4, 2017, IBM Corp. owes the state of Indiana $78 million in damages stemming from the company’s failed effort to automate much of Indiana’s welfare services. Indiana and IBM sued each other in 2010 after then-Gov. Mitch Daniels canceled the company’s $1.3 billion contract. (AP Photo/Mary Altaffer, File)

 

INDIANAPOLIS (AP) — IBM says 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 of Indiana’s welfare applications.

Indiana and IBM sued each other in 2010 after then-Gov. Mitch Daniels cancelled the company’s 10-year, $1.3 billion contract following numerous complaints.

An attorney for the state, Peter Rusthoven, says Marion County 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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