LOS ANGELES (Diya TV) — Tata Consultancy Services, India’s largest IT firm, and its U.S. affiliate have come to terms surrounding a lawsuit filed against them by Orange County, they’ve agreed to a settlement of $26 million in the three-year-old matter for an alleged “failed replacement” to the county’s automated property tax system.
“TCS and Orange County have agreed to settle an ongoing dispute regarding the joint development of a Property Tax Management System,” a TCS spokesperson said.
The matter stems from a contract which was taken out for development of a tax collection and management system for Orange County, Calif. Bidding for the project, held in 2007-2008, was won by TCS.
In the county’s lawsuit, it alleged that “TCS took what was originally promised to be a two-year, $6.4 million contract and tried to stretch it into a six-year, $17 million project.”
Both sides asserted blame against each other, but terms of the lawsuit don’t require either side to admit to liability in the matter.
“The settlement was reached after a mediation conducted by Magistrate Judge Jay C. Gandhi, representing a compromise between the two parties, versus the prospect of a lengthy trial in Orange County,” a spokesperson said.
“Tata Consultancy Services and its U.S. affiliate have paid the county $26 million to settle litigation over a failed replacement to the county’s automated property tax system that initially was to have been completed in 2010 but was never delivered,” a statement from the county said.
