On August 19, Orange County, California received notification that India’s largest IT firm, Tata Consultancy Services, had wired $26 million to the County Treasurer-Tax Collector, officially ending a 3-year lawsuit between the two parties.
More than 6 years ago, Orange County hired Tata to replace the county’s automated property tax system by 2010. After a 3-year extension plagued by delays, Orange County terminated the contract and sued Tata over the failed project, alleging fraud. Orange County claimed the IT firm had lied about its capabilities and was intentionally stretching out the contract in an attempt to make more money. The $26 million settlement is the largest amount recovered by the county in more than 20 years.