India’s largest software services provider, Tata Consultancy Services (TCS), has settled a lawsuit with Orange County in California filed in 2013, for $26 million. Orange County had slapped a lawsuit on TCS three years ago accusing them of “a series of false promises and intentional misrepresentations” regarding a contract bidding process. The litigation was over a contract for development of a tax collection and management system for Orange County in 2007-2008.
TCS America had won the contract and according to it, they had to make and execute the Property Tax Management System Project for Orange County. But TCS did not deliver. According to Orange County, TCS “made promises to complete the project on a budget and according to a timeline with which they had no intention of complying.”
“The county has suffered millions of dollars in damages as a result of defendants’ wrongful conduct and it will continue to suffer damages for the years it will take to develop a replacement for the failed project,” Orange County claimed in the lawsuit. Executive Office of Orange County in India, in a media release, said that the settlement amounts to $26 million.