An Indiana judge ruled Aug. 4 IBM must pay more than $78 million in damages to Indiana after the tech giant allegedly breached a contract to update the state's welfare system, Reuters reports.
Here are five things to know about the lawsuit.
1. IBM signed a contract with Indiana in 2006 to modernize the state's welfare system. However, three years later, Indiana terminated the contract, alleging IBM had not met the stated goals of the contract.
2. Indiana and IBM both filed lawsuits in 2010, each alleging a breach of contract by the other organization, and the two cases were consolidated. In 2012, a judge determined IBM had not breached its contract, and the company was awarded $49.5 million in past-due fees.
3. Last year, after an appeal, the state Supreme Court found IBM did breach its contract with Indiana, and the case was sent back to the lower courts to determine damages. Marion Superior Court Judge Heather Welch ruled Indiana was entitled to $128 million for breach of contract and IBM was entitled to almost $50 million for costs related to equipment fees.
4. Indiana Governor Eric Holcomb said in a statement, "This is a very positive step forward to vindicate the actions the state took in 2009 to terminate the contract with IBM … We look forward to the resolution of the lawsuit."
5. IBM, however, said Aug. 7 it planned to appeal the ruling. "IBM worked diligently and invested significant resources ... to help turn around a welfare system described at the time by Indiana's governor as one of the worst in the nation," IBM spokesman Clint Roswell said in a statement.