In 2006, the State of Indiana awarded a $1.3 billion contract to IBM to modernize and improve the state’s welfare eligibility system. In 2009, the state terminated the contract for cause, citing “numerous and repeated quality and timeliness failures” on the part of IBM. Both parties sued each other for breach of contract, with Indiana seeking $170 million in damages and IBM seeking $52 million. In August 2017, a state court ruled that IBM owed Indiana $78.2 million in damages ($128 million offset by $49.8 million in damages owed to IBM).