Company Sues Nebraska for Cancelled Contract

LINCOLN, Neb. (AP) – A company has sued Nebraska over the cancellation of a state contact for an $84 million upgrade to the state’s Medicaid eligibility and enrollment computer system.

India-based Wipro Limited filed a lawsuit against the state Monday, alleging Nebraska hasn’t paid $15.5 million for work that was completed before the project was halted in September. The company is also seeking $3 million in lost revenue and nearly $12 million in damages to its reputation.

Wipro alleges the state Department of Health and Human Services didn’t provide a “factual basis for the suspension.”

Wipro says the cancellation came after First Data, the company the department hired to review the project, found that work was on budget and on schedule.

State officials declined to comment.