Pennsylvania Sues IBM Over $170M Jobless Claims Contract


Pennsylvania Gov. Tom Wolf’s administration has sued IBM, saying the company failed to deliver on a 2006 contract to build an integrated system to process unemployment claims.

The lawsuit, filed Thursday, says that the computer company was paid $170 million, but delivered a failed project when the state let the contract expire in 2013. The suit says the project was nearly four years behind schedule and $60 million over budget.

The state accuses IBM of breach of contract, and seeks undisclosed damages.

Armonk, New York-based IBM, says the claims have no merit and it’ll fight the lawsuit.

The suit comes amid a fight between the Democratic governor and Republican senators over how the unemployment compensation system is run and funded.

It was filed in Dauphin County by a private law firm representing Pennsylvania.