Pennsylvania sues IBM over $170M jobless claims contract
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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.
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.
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