MS vs AMS

The State of Mississippi versus American Management Systems On April 22, 1999, the State of Mississippi filed a lawsuit against American Management Systems (AMS) in Hinds County, Mississippi. This was ten days prior to when AMS would go live with the Withholding Tax System. This was only a single component of the State Tax Automated Revenue System (STARS). American Management Systems was contracted to construct an automated, integrated tax system for Mississippi. At the completion of the …

…of court. After careful deliberation the hearing came to a close in approximately 90 minutes. The lawsuit, which was filed and won, was to regain lost revenues and forfeit all ties with AMS. The settlement that Mississippi received was, breach of contract $299,539,652, punitive damages of $175,000,000. The actual damages were based on the cost to build an automated, integrated tax system for Mississippi and to recover revenues that should have been collected after implementations of the system.