3M drops lawsuit against IBM Watson Health

3M filed a notice on Feb. 18 to voluntarily dismiss its lawsuit alleging that IBM Watson Health had used 3M's healthcare software "in unauthorized ways," according to documents filed in federal court in New York.

The notice of voluntary dismissal included no further information about 3M's decision to drop the lawsuit, but in a statement to Becker's Hospital Review, IBM said, "Both 3M and IBM have agreed to resolve this dispute amicably and seek a negotiated settlement."

The initial lawsuit, which was filed on Jan. 31 and unsealed Feb. 7, alleged that IBM Watson Health had engaged in the long-term unauthorized use of 3M's Grouper Plus System software for cloud-based processing of claims and other coded data to calculate reimbursement.

3M alleged that IBM did not have permission to use the software after acquiring Truven, which had signed two licensing agreements with 3M prior to the acquisition, and that IBM had also withheld royalties for the allegedly unauthorized usage of the software. At the time, an IBM spokesperson said in a statement to Becker's that the company had "met the terms of the agreement" and would "defend against these distorted claims."

Editor's note: This article was updated on Feb. 21 to include a statement from IBM.

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