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Project

IBM punished for lies when developing the website by the state order

Customers: Maryland Health Benefit Exchange

Insurance

Contractors: IBM


Project date: 2012/02  - 2013/10

In the middle of June 2019 IBM and its subsidiary company Curam Software agreed to pay $14.8 million for settlement of the charges brought by the state medical insurance company Maryland Health Benefit Exchange. The last considers that after acquisition of Curam Software in 2011 IBM exaggerated possibilities of the purchased software developer. It allowed Curam Software to sign the development contract of the website and the IT platform for Maryland Health Benefit Exchange – a task with which the company finally did not cope.

IBM punished for lies when developing the website by the state order

Curam Software — the Irish software developer which in the different countries is used by medical authorities and social security. According to the Ministry of Justice, IBM closed the transaction on acquisition of the company on December 19, 2011, on the same day, when Curam Software offered insurance company the services in development of the website.

Next month Curam Software with the consent of IBM provided software before insurance company to receive the state order. The contract signed in February, 2012 included Curam-IBM as subcontractor. However Curam Software deceived Maryland Health Benefit Exchange as provided to software did not comply with technical requirements of the contractor and could not provide normal functioning of the website of the company. The contract was terminated after start of the website in October, 2013.

According to the prosecutor, IBM did not assume responsibility for the event. The insurance company of the State of Maryland will receive $2.8 million for the participation in settlement. Official representatives of IBM and Ministry of Justice did not provide the additional information. Nevertheless, in the prepared statement the Assistant Attorney General said that department intends to protect the American taxpayers from similar false contracts.[1]

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