The government of the province of Alberta in Canada has withdrawn a lawsuit against IT services provider Affiliated Computer Services Inc as it lacks jurisdiction over the Dallas, Texas-based company.
In February, authorities in Alberta took action against ACS and its Canadian subsidiary, ACS Public Sector Solutions Inc, over an alleged violation of Canadian federal law that prohibits giving or offering rewards in connection with a business relationship.
ACS came under scrutiny after winning a deal worth $2m a year to provide photo enforcement services to the city of Edmonton. While the case against the parent company has been dropped, Alberta will continue to pursue its claims against ACS Public Sector Solutions. A preliminary hearing of the case is expected to be held in September 2007.
In other news, shares in ACS fell over 6% after the company released disappointing preliminary results for the first quarter of its fiscal year.