Report: IBM sued, loses major contract

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Report: IBM sued, loses major contract

US hospitality giant accuses Big Blue of fraud.

US hospitality heavyweight Carlson has canned a multimillion dollar outsourcing deal with IBM five years before its expiry, alleging fraud by Big Blue staff. 

The privately held US company owns major brands such as Radisson Hotels, Country Inn, TGI Fridays, Park Inn and Par Plaza.

Carlson had signed a 10-year outsourcing deal with IBM in 2005, with several hundred IT and finance staff losing their jobs or being transferred across to IBM.

The signing of the outsourcing deal was opposed by the firm's CIO, Steve Brown at the time, who resigned from the company in protest.

Besides fraud, Carlson has alleged IBM breached its contract and its fiduciary duties, according to court documents obtained by Information Week

IBM has dismissed the claim as "baseless", claiming Carlson filed the complaint because IBM was demanding payment from parties under the Master Services Agreement between the two.

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