Pennsylvania sues IBM over $170M jobless claims contract
HARRISBURG, Pa. (AP) - Pennsylvania Gov. Tom Wolf's administration sued International Business Machines Corp. on Thursday, saying the company failed to deliver on a 2006 contract to replace an outdated system of processing unemployment claims.
The lawsuit said the technology and consulting giant was paid $170 million, but had delivered a failed project by the time the state let the contract expire in 2013. At that point, the project was nearly four years behind schedule and $60 million over budget, the lawsuit said.
IBM had an obligation to ensure that all elements of the project were coordinated well and completed competently and on time, the lawsuit said.
"IBM repeatedly failed to live up to these commitments and made decisions that thwarted successful completion of the project," it said.
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