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Published March 16, 2011, 02:56 PM

MN to Pay $7.25M in Software Suit

Minnesota will pay $7.25 million to settle a lawsuit over a failed software project originally intended to streamline applications for public health programs.

By: Associated Press,

ST. PAUL, Minn. (AP) — Minnesota will pay $7.25 million to settle a lawsuit over a failed software project originally intended to streamline applications for public health programs.

The Department of Human Services told lawmakers Wednesday that it settled with ACS State and Local Solutions Inc.

ACS sued after being fired three years ago from the HealthMatch software project, which suffered multiple delays and problems. The project goes back to 2002, and the state had spent $30 million on HealthMatch as of mid-2008. The software was never finished.

Deputy Commissioner Anne Barry tells lawmakers that the agency has the settlement money in administrative accounts and leftover HealthMatch funds. She says the settlement doesn't change Gov. Mark Dayton's budget recommendations.

The state must pay by March 31.

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