Judge ruled in case of Indiana suing IBM

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. The order was issued Wednesday.

The same judge 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.

Governor Mitch Daniels killed the IBM contract to automate the state's welfare system in 2009. Less than three years into its scheduled 10-year span, following wide-ranging performance complaints.

Indiana initially sued IBM for $437 million, which was later reduced to about $170 million. IBM countersued for about $100 million that it claimed it was owed.

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