IBM Sued By Mexican Mobile Phone Operator For $2.5 Billion

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NEW YORK (Reuters) - Mexican mobile phone operator Iusacell SA de CV sued IBM Corp on Wednesday, accusing the U.S. technology giant of making fraudulent representations that caused it to lose $2.5 billion in profits.

The lawsuit, filed in federal district court in New York, was heavily redacted, leaving many of the claims unclear. But the complaint centered on a contract Iusacell claimed IBM induced it to enter into in Mexico.

"Events subsequent to the execution of the agreement have revealed that IBM both knowingly misrepresented and wrongfully concealed from Iusacell material facts both before and during the parties relationship," Iusacell said in the complaint.

The lawsuit seeks more than $2.5 billion in damages.

IBM Wednesday blasted the lawsuit as a "transparent attempt" to avoid complying with contractual obligations.

IBM said in a statement that Iusacell has failed to pay IBM Mexico what it is owed under the contract. The software company's Mexican unit had previously filed an arbitration claim against Iusacell seeking to enforce the contract, the statement said.

Iusacell is co-owned by television and retail mogul Ricardo Salinas' Grupo Salinas and broadcast and pay TV giant Grupo Televisa

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