On or about June 29, 2006, the Commonwealth of Pennsylvania, Department of Labor and Industry and IBM entered into Contract No. RFP UC 2005-1, for services related to the modernization of the unemployment compensation delivery system in the Commonwealth (the “Contract”), in a project known as the Unemployment Compensation Modernization System (“UCMS”).  DLI allowed the contract to expire at the end of September 2013.  On March 9, 2017, DLI filed a lawsuit against IBM in the Court of Common Pleas of Dauphin County, Pennsylvania, alleging breach of the Contract and other causes of action against IBM and seeking damages (the “Lawsuit”). 

On August 24, 2021 the parties announced that after extensive discovery and the exchange of expert reports, they engaged in a lengthy negotiation and reached a settlement to resolve the Lawsuit.

Case name: Commonwealth of Pennsylvania v. International Business Machines Corp., Case No. 2017-cv-1740, Court of Common Pleas of Dauphin County, Pennsylvania.