IBM Beats Suit Alleging IRS Was Duped Into Signing Software Deal

IBM defeated a whistleblower’s false claims suit in D.C. federal court accusing the company of fraudulently inducing the Internal Revenue Service into signing a $265 million software contract.

Paul Cimino failed to adequately allege that IBM worked with Deloitte LLP to create a false audit in an attempt to coerce the IRS into paying for unwanted software, Judge Amit P. Mehta of the U.S. District Court for the District of Columbia ruled Sept. 30.

Cimino didn’t show that the agency agreed to the contract because of alleged misrepresentations in the audit, the court said.

Cimino’s claims also failed for lack ...