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Dept. of Labor & Industry Announces Settlement with IBM

08/24/2021

Harrisburg, PA – The Pennsylvania Department of Labor & Industry (L&I) has settled and resolved a lawsuit that the department filed against IBM in 2017 related to a project to upgrade Pennsylvania's outdated unemployment compensation computer system.

L&I awarded IBM a contract in June 2006 to design and build the Unemployment Compensation Modernization System (UCMS), an integrated, comprehensive and modern system. L&I let the contract expire at the end of September 2013.

IBM has acknowledged no liability or wrongdoing; and both parties are pleased to have avoided additional litigation expense.

Following an extensive discovery period and exchange of expert reports and opinions, the parties engaged in a lengthy negotiation and the settlement was reached.

MEDIA CONTACT: Sarah DeSantis, dlipress@pa.gov  

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