Pennsylvania sues IBM over $170M jobless claims contract

     Gov. Tom Wolf (Matt Rourke/AP Photo, file)

    Gov. Tom Wolf (Matt Rourke/AP Photo, file)

    Pennsylvania Gov. Tom Wolf’s administration is suing IBM, saying the company failed to deliver on a 2006 contract to build a modern and integrated system to process unemployment claims.

    The approximately 50-page lawsuit was filed Thursday in Dauphin County court by a private law firm representing the state.

    The state says IBM was paid $170 million, but had delivered a failed project when the state let the contract expire in 2013, nearly four years behind schedule and $60 million over budget.

    It accuses IBM of breach of contract and misrepresenting project information. It seeks undisclosed damages.

    • WHYY thanks our sponsors — become a WHYY sponsor

    A telephone message left with Armonk, New York-based IBM’s media relations department wasn’t immediately returned.

    The lawsuit comes amid a fight between Wolf and Republican senators over how the unemployment compensation system is run and funded.

    Want a digest of WHYY’s programs, events & stories? Sign up for our weekly newsletter.

    Together we can reach 100% of WHYY’s fiscal year goal