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Closing Arguments Today In IBM Suit

After five weeks of testimony, the lawsuit between the state and IBM is drawing to a close.

IBM Headquarters

Photo: Simon Grieg (Flickr)

IBM and the state of Indiana are suing each other for a cancelled contract that IBM had to process welfare applications.

Closing arguments are set for Tuesday in the lawsuit over the attempted privatization of Indiana‘s welfare intake system. The state and IBM are suing each other over the termination of IBM‘s contract to handle eligibility determinations. The state contends IBM made promises it knew it couldn‘t keep to win the contract. IBM says it followed directions, and got the ax because the state was trying to save money.

The last of 97 witnesses testified last Wednesday, but lawyers have spent five days preparing final motions and closing arguments. The state wants IBM to pay 170-million dollars for the cost of overhauling the welfare intake system the company installed — the state claims breach of contract. IBM says it fulfilled its contract, and says the state owes 100-million dollars in equipment and unpaid fees.

Marion Superior Judge David Dreyer won‘t issue a decision until summer.

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