IBM Successfully Overturns $1.6 Billion Judgment in BMC Software Dispute

The U.S. Fifth Circuit Court of Appeals ruled that IBM did not breach the contract with BMC, reversing a massive 2022 judgment.

IBM won an appeal against a $1.6 billion judgment originally awarded to BMC for software replacement at AT&T.
The appeals court found that IBM's actions were within the terms of the contract, citing 'other valid business reasons' for the software swap.
The initial ruling by a Texas federal court was overturned due to a misinterpretation of contract language, according to the appellate judges.
IBM's stock saw a slight decrease despite the legal victory, reflecting mixed market reactions.
BMC declined to comment on the reversal, while IBM has not issued a response.