IBM Gets $17.5M Fraud Verdict Axed, Faces New Breach Trial

Law360 (March 15, 2019, 7:23 PM EDT) -- The Texas Supreme Court on Friday wiped out a $17.5 million award for a company that alleged IBM Corp. had made misrepresentations that led it to enter into a software contract, but ordered a new trial on its claim that IBM breached the contract.

The contract between Lufkin Industries — a General Electric Co. machinery manufacturer based in East Texas — and IBM contained disclaimers that clearly barred Lufkin from bringing suit for misrepresentations outside the contract, the state's high court held.

In May 2015, Lufkin was awarded $27 million — later knocked down to $17.5 million — by a jury...

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