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IBM ‘Exploited’ Software Co., Owes $1.6B, Texas Judge Says

IBM “exploited” Houston-based software company BMC for its own gain when it breached a licensing agreement involving AT&T and owes BMC about $1.6 billion in damages, a Texas federal judge has ruled after a two-week bench trial.

U.S. District Judge Gray H. Miller on Monday ruled that IBM owes BMC about $717.7 million in direct contract damages stemming from BMC’s claim for fraudulent inducement. Judge Miller also found that IBM had “exploited” BMC for its own gain “cementing its abdication of good faith and fair dealing in the service of its own self-interest” and ruled that BMC was entitled to $717.7 million in punitive damages, too.

BMC is represented by Bracewell’s Sean Gorman, Chris Dodson, Jeff Oldham, Tim Geiger, Kyle Mason, Drewe Molin, Matthew ReasonerWalter Simons and Cole Thoms.

“This outcome was the result of five years of hard-fought litigation,” said Gorman in a statement to Law360. “We value the opportunity to try our case in a court of law, and are pleased with the outcome.”

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