June 21, 2019

IBM Settles FCA Suit Involving Health Insurance Exchange Software

IBM agreed to pay $14.8 million to settle FCA allegations involving a software product developed by Curam Software Ltd, which IBM acquired in 2011. The DOJ alleged that IBM and Curam made material representations about the software's capabilities in presentations and submissions to the State of Maryland as part of a contract award process in support of Maryland's Health Insurance Exchange (HIX) website and IT platform. The Maryland HIX contract was funded in part by federal grants from HHS. The alleged conduct included misrepresentations regarding the development status of the software and whether its existing functionality met Maryland's technical requirements. The case appears to have been initiated by the government, not by a whistleblower.