Following the release of Cable & Wireless's annual report on Friday, it has emerged that the telecoms company is suing IBM for some $210 million (£127 million) over allegations that the computing firm overcharged for IT services principally rendered between January 2001 and May 2002.
Accusing IBM of 'significant levels of overcharging', particularly during the period in question, C&W revealed that it intends to claim $115 million in respect of work carried out for its UK operation, and $22 million for work done in the United States.
According to a report in the UK's Sunday Telegraph, for each month that the computing giant refuses to reduce its charges, C&W has announced that 'further substantial overcharge' payments will be added to the lawsuit, which is set to have a preliminary hearing in September.
Although IBM has declined to comment on the ongoing litigation, it is believed to have brought counter-claims against C&W in respect of work that it should have been given under the contract between the two firms. However, speaking to the Telegraph at the weekend, a spokesman announced that:
'C&W believes it has meritorious defences to the counter-claims asserted by IBM and intends to vigorously defend itself.'
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