IBM's Systems and Technology Group finds itself at the center of controversy again, this time as it is being sued by one of its Big Blue's partners, Devon IT, for allegedly running what the thin client maker calls "a wide-spread Ponzi scheme" over a period of five years. In the complaint, which you can read here and which was …
Do Devon signed a dodgy contract with IBM that might have been okay were it not for also being hit by the US economic collapse. Now they are alleging RICO. Which I understand because RICO has lower proof requirements than just straight fraud. Although that doesn't mean RICO applies. In point of fact, based only on the info in this story, I think that part of the suit can probably be dismissed quickly and forthrightly.
If I were on the jury, I'd hope for a lengthy trial, find for Devon, and award them damages of $1.
Wow... This was not a single dodgy contract issue!
Reading the complaint is just unbelievable!
We are not talking about a single contract, but deception compounding deception, each time IBM extracting money from their partner to increase their revenues while not delivering upon their promises.
Standard IBM behaviour
IBM was the first company to employ FUD:
Before Microsoft, the big evil company was always been IBM. The examples are numerous. The funny thing is that open source people believe IBM is not evil, because of Groklaw site. Which is actually a IBM marketing channel. It censores IBM critizicism in a very sneaky way:
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