AMS settles lawsuit

American Management Systems Inc. has settled a $350 million lawsuit brought by the Federal Retirement Thrift Investment Board, its former client.

Under terms of the agreement, the board will pay AMS $10 million for certain work it performed under the contract and for which payment remained outstanding. The board also agreed to a no-fault termination of the contract.

AMS of Fairfax, Va., will pay $15 million to the Thrift Savings Plan as partial reimbursement of the $31 million it received for other work it performed under the contract.

AMS had worked for four years to build a new computer system for managing the government's retirement system when the board fired the company and sued it for fraud and breach of contract in the U.S. District Court for the District of Columbia. The board's suit sought to recover actual damages of about $50 million and punitive damages of $300 million. The suit had been pending appeal on jurisdictional grounds.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close

Trending

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

I agree to this site's Privacy Policy.