Tata Pays $26 Million to Settle Lawsuit over Failed Software

The following is a press release from an organization unaffiliated with Voice of OC. The views expressed here are not those of Voice of OC

August 23, 2016
Contact: Jean Pasco
(714) 834-7218

Tata Pays $26 Million to Settle Lawsuit over Failed Software
Global software vendor Tata Consultancy Services and its U.S. affiliate have paid the County $26 million to settle litigation over a failed replacement to the County’s automated property tax system that initially was to have been completed in 2010 but was never delivered. Following mediation held late last month, the Board of Supervisors approved the settlement proposal of United States Magistrate Judge Jay C. Gandhi.  Tata also approved the mediator’s proposal, which resulted in a binding agreement.  On Friday, August 19, 2016, the County received notification that the $26 million settlement payment from Tata had been wired to the County Treasurer-Tax Collector. In exchange for this payment, the County will now dismiss its lawsuit against Tata, which in turn will dismiss its cross complaint. In its legal complaint, the County alleged that Tata fraudulently induced the County into selecting Tata to develop the property tax system and then presented false claims in the form of invoices and reports, provided false and unachievable milestone completion dates, and intentionally understaffed the project to maximize profit. In the litigation, the County alleged that Tata took what was originally promised to be a two-year, $6.4 million contract and tried to stretch it into a six-year, $17 million project. The County intended to ask the jury to award punitive damages for fraud against Tata.