Court Dismisses Suit Against AMS
- By Renae Merle
- Dec 03, 2001
A U.S. District Court dismissed a multimillion dollar lawsuit against American Management System Inc. Nov. 30 for lack of jurisdiction, according to the company.
In July, the Federal Retirement Thrift Investment Board sued the Fairfax, Va., information technology firm for $350 million in U.S. District Court for the District of Columbia. The agency accused AMS of bungling a contract to create a new system to track retirement savings for federal employees. AMS denied any wrongdoing.
"The ruling does not constitute a final resolution of the dispute between the thrift board and AMS," AMS said in a release. The company declined to comment further.
It is unclear whether the thrift board can re-file the lawsuit in a different court. The lawsuit was just the latest bad news for the firm, which has had several high-profile client disputes.
Analysts have said AMS needs to resolve the lawsuit with the thrift board to regain investors confidence. Over the last few months, the company has announced it would lay off about 15 percent of its work force in response to continued softness in the commercial financial services market.
AMS closed down 1 percent Nov. 30 at $15.30.