Local News

A judge has ruled that Indiana cannot collect millions of dollars it claims IBM owes over the state's failed welfare system overhaul but says IBM is entitled to payment for equipment the state kept.

Marion County Judge David Dreyer issued the order today.

Dreyer presided over a trial earlier this year of dueling lawsuits concerning the state's cancellation of IBM's nearly $1.4 billion contract with the Family and Social Services Administration.

Gov. Mitch Daniels killed the contract to automate the state's welfare system in 2009, less than three years into its scheduled 10-year span, amid wide-ranging performance complaints from clients, their advocates and federal officials.

Indiana sued IBM for the $437 million it paid the company, and IBM countersued for about $100 million that it claimed it was owed.