IBM Says IRS Not Tricked Into Software Award by Faulty Audits

IBM urged a federal appeals court to affirm dismissal of a false claims suit alleging it worked with Deloitte LLP to fraudulently induce the Internal Revenue Service into signing a $265 million software contract.

Whistleblower Paul Cimino, a former IBM sales representative, has failed to show that allegedly manipulated audits caused the IRS to sign the agreement, IBM told the U.S. Court of Appeals for the D.C. Circuit Monday.

Cimino’s complaint didn’t allege that the IRS accepted the audits’ findings, IBM said.

The suit also fails for a lack of materiality under the False Claims Act because the IRS continued ...