June 14, 2019

IBM and its subsidiary, Cúram Software, will pay $14.8 million for allegedly making material misrepresentations to the State of Maryland during a contract award process for the state’s health insurance exchange website.  Cúram, which was acquired by IBM at the end of 2011, had applied for the award in 2012 and subsequently became a subcontractor on the project, which was partially funded by federal grants.  However, during the application process, and with IBM’s knowledge, Cúram allegedly misrepresented the development status and existing functionality of its software, as well as its software’s ability to integrate with other software.  The resulting issues caused the State of Maryland to terminate the contract and replace Cúram’s software.  DOJ; USAO MD

Tagged in: FCA Federal, FCA State, Government Procurement Fraud,