Decade-Long Lawsuit Between State And IBM Nears Its Conclusion

Jun 26, 2019

A decade-long legal battle between the state and tech giant IBM is nearing its conclusion.

Then-Gov. Mitch Daniels signed a 10-year contract worth more than $1 billion with IBM in 2006 to overhaul the state’s welfare system. That contract was canceled just three years later after disastrous implementation.

The two sides sued each other, each seeking money over the canceled contract. After a lengthy legal fight, the courts eventually ruled that IBM owes the state about $78 million.

That decision was appealed, by both sides. A new decision from the state Supreme Court cements that the tech company will be the one to pay – but that $78 million figure will likely be reduced to account for interest IBM is owed. Still, after the state high court’s latest ruling, IBM will still have to pay tens of millions to the state of Indiana.