IBM hit with $2.5 billion lawsuit

IBM hit with $2.5 billion lawsuit

IBM hit with $2.5 billion lawsuit

Written by Staff Writer

16 Apr, 2014 | 10:00 pm

Mexican mobile phone operator Iusacell SA de CV sued IBM Corp on Wednesday, accusing the U.S. technology giant of making fraudulent representations that caused it to lose $2.5 billion in profits.

The lawsuit, filed in federal district court in New York, was heavily redacted, leaving many of the claims unclear. But the complaint centered on a contract Iusacell claimed IBM induced it to enter into in Mexico.

“Events subsequent to the execution of the agreement have revealed that IBM both knowingly misrepresented and wrongfully concealed from Iusacell material facts both before and during the parties relationship,” Iusacell said in the complaint.

The lawsuit seeks more than $2.5 billion in damages.

A spokeswoman for IBM did not immediately respond to a request for comment.

-Reuters

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