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Judge Orders IBM To Post $25M Bond In Indiana Welfare Case

IBM and the state of Indiana are suing each other to recover lost funds.

A judge has ordered IBM Corp. to post a $25 million bond as it appeals a $78 million judgment stemming from the company’s failed effort to automate much of Indiana’s welfare services.

A Marion County judge issued the order Tuesday while granting IBM’s request to halt enforcement of the full monetary judgment as its appeal is pending.

The same judge ordered IBM in August to pay Indiana $78 million in damages following a long-running court case that continues to wind through the courts.

Indiana and IBM sued each other in 2010 after then-Gov. Mitch Daniels cancelled the company’s $1.3 billion contract to privatize and automate the processing of Indiana’s welfare applications.

Indiana pulled IBM’s contract in 2009 following complaints about long wait times, lost documents and improper rejections of benefits.

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