Dallas computer services firm wins $7 million judgment against FDIC

For immediate release: December 11, 1998

Trial Defeat Prompts Feds to Settle With Dallas Computer Group

Attorney Mike Lynn: $15 Million Verdict and Settlement Vindication for Baseless Charge

DALLAS – A recent $7 million jury verdict on behalf of a Dallas-based computer services consortium against the Federal Deposit Insurance Corp. has grown to nearly $15 million after federal prosecutors agreed to forgo appeals and settle all additional claims.

The $14.9 million resolution stems from unfounded charges that Texas Data Control, a Dallas-based computer services joint venture, had overcharged the FDIC by $5 million for data processing and asset management services performed for the Resolution Trust Corporation.

Jurors deliberated less than 45 minutes before rejecting the government’s charges and instead sided with Dallas attorney Mike Lynn, who represented Texas Data Control in the litigation. Lynn, co-founder of Lynn Stodghill Melsheimer & Tillotson, charged in a countersuit that the RTC had breached its contract with the joint venture.

“The government had no grounds to bring this charge against Texas Data Control, and it was a classic case of abuse of power,” Mr. Lynn says. “The jury saw right through these claims and held them accountable. We’re pleased that the government has made the decision to stop wasting taxpayer money and settle the rest of these claims.”

Texas Data Control is a joint venture of 10 data processing companies, the largest of which are Computer Sciences Corp. of El Segundo, Calif., and Fiserv Inc. of Milwaukee. The group entered into a contract with the RTC, which was created by Congress to manage the assets of failed savings and loan association in the late 1980s. The FDIC assumed the RTC’s responsibilities in 1996.

Lynn Stodghill Melsheimer & Tillotson is a nationally recognized trial law firm focusing on complex, “high stakes” litigation where results truly matter.