TCS Settles Lawsuit With Orange County For $26 Mn
Software major Tata Consultancy Services (TCS), has reportedly settled an ongoing law suit with Orange County, California. The company has paid $26 million to settle the three-year long dispute. The dispute was over a failed replacement to the county’s automated property tax system that initially was to be completed by 2010 but was not delivered.
“TCS and Orange County have agreed to settle an ongoing dispute regarding the joint development of a Property Tax Management System. Both parties had asserted claims against each other, but neither admits any liability. The settlement was reached after a mediation conducted by Magistrate Judge Jay C Gandhi, representing a compromise between the two parties, versus the prospect of a lengthy trial in Orange County,” Business Standard report quoted TCS spokesperson as saying.
The settlement was reached after mediation was held late last month, the Board of Supervisors approved the settlement proposal of United States Magistrate Judge Jay C Gandhi. In a press statement, the County Executive office of Orange County said that 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,” said the statement.
Had the litigation not been settled, trial would have begun on August 2, 2016. The County sued Tata in 2013, claiming the software giant, violated the California False Claims Act and engaged in fraud, intentional misrepresentation, negligent misrepresentation and fraudulent concealment, as well as breach of contract. The software program was to interface on behalf of the assessor, treasurer-tax Collector and auditor-comptroller departments to generate annual tax bills for secured and unsecured property, including land, buildings, boats, aircraft and business equipment.