Jury hits supplier with £300m fine

Mike Simons

Mike Simons

A US jury has hit an IT supplier with a $475m (£300m) penalty over its failure to supply an integrated tax collection system for the state of Mississippi.

The verdict, against American Management Systems (AMS), is believed to be the largest ever court award against an IT supplier.

It should give food for thought for the Labour government, as it battles to turn the tide of public sector IT disasters in the UK.

The state of Mississippi sued AMS in April 1999, alleging the company continually failed to meet its $11.9m contract to build a system that would integrate the state's 36 tax collection and reporting systems.

Judge reverses award

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