Marion Judge Rules Indiana Cannot Collect the Millions it Claims From IBM

By Daniela Salvador

July 18, 2012 Updated Jul 18, 2012 at 5:20 PM EDT

MARION COUNTY, Ind. (Indiana’s NewsCenter) - The Hoosier state lost a round in court.

A Marion County judge ruled that Indiana cannot collect millions of dollars it claims IBM owes over the state's failed welfare system overhaul.

However, the judge did rule that Indiana owes IBM cash for equipment the state kept.

Indiana sued IBM for the $437 million it paid the company, and IBM countersued for about $100 million that it claimed it was owed.

Indiana cancelled the $1.4 billion contract with IBM after what some state officials called careless service.

Governor Mitch Daniels vows to appeal.




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