Aug 7, 2017

IBM ordered to pay $78M to Indiana for automation breakdown

Mary Altaffer / AP

A judge ruled late last week that IBM owes Indiana $78 million in damages due to its failed attempt to automate the state's welfare services, per the AP. IBM said Monday it would appeal the decision since it "is contradicted by the facts and the law."

The beef: Indiana and IBM sued each other in 2010 when then-Governor Mitch Daniels canceled the $1.3 billion contract between Indiana and IBM to automate welfare applications.

Where the automation fell flat: The idea was for residents to apply for food stamps, Medicaid, and other benefits through call centers, the internet, and fax machines, but when residents started complaining about long wait times, lost documents, and improper rejections, the deal was off. One of the state's private attorneys, Peter Rusthoven, said IBM is "a big corporation that refused all along to take responsibility for its poor performance."

Go deeper

Coronavirus cases rise, as more Americans on cruise confirmed ill

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's NHC; Note: China refers to mainland China and the Diamond Princess is the cruise ship offshore Yokohama, Japan. Map: Danielle Alberti/Axios

A U.S. public health official confirms more than 40 Americans on the Diamond Princess cruise ship off Japan have coronavirus, while the remaining U.S. citizens without symptoms are being evacuated.

The big picture: COVID-19 has now killed at least 1,770 people and infected almost 70,000 others. Most cases and all but five of the deaths have occurred in mainland China. Taiwan confirmed its first death on Sunday, per multiple reports, in a 61-year-old man with underlying health conditions. Health officials were investigating how he became ill.

Go deeperArrowUpdated 2 hours ago - Health

Scoop: Inside the Trump campaign's big hedge on Facebook

Illustration: Eniola Odetunde/Axios

The Trump campaign has invested most of its advertising budget to date on Facebook, testing thousands of versions of ads per day to maximize its spending.

But behind the scenes, a source familiar with the campaign tells Axios, the thinking has shifted: "As everyone can see, we still have strong spending on Facebook, but the percentage of our total media budget [on Facebook] is shrinking."

Trump's revenge tour has the House in its sights

Illustration: Aïda Amer/Axios. Photo: Saul Loeb/Getty Contributor

In the lead-up to the 2018 midterm elections — buoyed by Republican control of both chambers — President Trump viewed campaigning for the House as a lower-tier priority and instead poured his energy into rallying for the Senate.

But after the GOP reckoning in 2018, and experiencing firsthand how damaging a Democratic-led House has been to him, Trump is now personally invested in helping Republicans regain the majority in November, several people familiar with his thinking tell Axios.