eHealth Lawsuit Against CGI Information Systems to be Settled in Arbitration
A lawsuit seeking more than $100 million in damages against Ontario company CGI Information Systems is being settled out of court by an arbitrator. The lawsuit, filed by eHealth Ontario, alleges that CGI was hired to implement a $46 million diabetes registry project, but failed to meet deadlines or produce a working version of the registry. eHealth canceled the contract without payment in 2012, prompting CGI to file a lawsuit seeking $102 million in damages.
CGI claims they invested ‘significant resources’ into the project, and assigned blame for any delays to eHealth Ontario itself, including constant changes in scope and design that necessitated starting over from scratch and scuttling completed work. CGI also claims it had ‘substantially completed’ the diabetes registry project by the summer of 2012. The contracted delivery date of a functioning registry was June 2011.
eHealth in its counter-suit claims that CGI misrepresented their capabilities and experience in building similar tools, and thus should be held accountable for all delays and the eventual failure of the project. They also claim the delivered product was not workable.
Any damages awarded to CGI would be paid for from tax revenues. In response to the lawsuit, eHealth filed a $25 million suit of its own. Both sides have agreed to settle the dispute in arbitration, however, despite a cacophony of complaints from government ministers who fear the public will be forced to pay for something they never received.
The arbitration is expected to be fast-tracked, with a final decision coming by end of June.