State of Nebraska cancels contract after spending $6M; company sues for another $15.5M
Nebraska officials canceled an $84 million Medicaid eligibility and enrollment system upgrade in December after about $6 million in state tax dollars had been spent on the project.
On Monday, the company hired to build the new system — India-based Wipro Limited, which has a U.S. headquarters in New Jersey — sued the state, saying Nebraska failed to pay $15.5 million for work done before the project was halted in September.
In a lawsuit filed in Lancaster County District Court, Wipro is also seeking $3 million in lost revenue from the state, as well as $11.9 million in damages done to its reputation.
Last year, the Nebraska Department of Health and Human Services said it ordered a review of the project that began in 2014 to bring the state in line with Affordable Care Act standards after a manager on the project retired.
Read more: https://journalstar.com/news/state-and-regional/govt-and-politics/state-of-nebraska-cancels-contract-after-spending-m-company-sues/article_8c9eda53-c6a7-5398-a281-1eb5c30d7127.html
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