Monday, March 26, 2012

Judge Dismisses 17 of State's Claims Against IBM

It's easy to forget a trial over the legal dispute between the state's Family and Social Services Administration over the canceled welfare privatization contract IBM has been going on for the past month because there has been very little coverage to date. The Star does have a brief story today mentioning that Judge David Dreyer has signed an order dismissing 17 of the state's claims against IBM following the conclusion of the state's case.

"Specifically, the state has introduced no credible evidence that IBM knowingly or intentionally made any false statements to the state or any other governmental entity," according to Dreyer's order.

Before the trial got underway last month, Judge Dreyer made key rulings that substantially affected the parties' potential liability if either lost the case. On one summary judgment motion in favor of IBM, Judge Dreyer ruled the company is entitled to up to $40 million in subcontractor assignment fees provided under the contract if it prevails in its claims against the state. Under Dreyer's earlier ruling, IBM both parties could be liable to the other in excess of $100 million if it prevails at the conclusion of the trial.

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