Webster & Associates LLC

The ACLU is trying to bring a class action lawsuit against the state of Indiana because of problems with its recently rolled-out welfare benefits management system:
INDIANAPOLIS - Problems with Indiana’s landmark automation of welfare eligibility have cost some disabled residents food stamps and other benefits they need to survive, the American Civil Liberties Union alleges [...]

The opening of Terminal 5 at London Heathrow Airport has not been without problems, to say the least. And one of the specific problems appears to be the automated baggage handling system:
…the computer-operated baggage system has crashed and luggage is now being sorted manually before being loaded on to planes.
Twelve return flights to short-haul destinations [...]

 [UPDATED 04/01/08: Here's some additional commentary on the case.]
This news just came over the wire:
BOSTON/NEW YORK (Reuters) - Waste Management Inc said it spent more than $100 million on a computer system that was supposed to help it save money, but instead turned out to be a “complete failure.”
Waste Management spokeswoman Lynn Brown said [...]

Not all large IT projects fail, and even those that are deeply troubled can be turned around:
Officials at HM Courts Service (HMCS) say they have turned around a failing £447m project to provide a national case management system for magistrates courts - a scheme that is 16 years late and will cost nearly three times [...]

…this IT project out of Sydney appears to fit the bill:
Ten years after it was first announced and almost $100 million later, Sydney is no closer to a cashless public transport ticketing system after the NSW Government was forced to terminate its contract for the troubled Tcard.
Transport Minister John Watkins announced the contract with Integrated [...]

A number of times over the past 13 years I have been asked to review an existing (and usually large-scale) IT project, figure out where it stands, and make recommendations as to how to get it back on track. I have found that a small number of questions will usually get me to the heart [...]

This is a new pattern, one not explicitly called out in my original white paper (though hinted at in a few places).
Summary: A client starts a large IT project that involves one or more outside firms (consultants, vendors, developers, manufacturers). Within the client organization, a champion arises (or is appointed) for this project. The project [...]

[Adapted from Patterns in IT Litigation: Systems Failure (1976-2000)]
Having reviewed these cases and the patterns they exhibit, some practical suggestions come to mind.

[Adapted from Patterns in IT Litigation: Systems Failure (1976-2000)]
Summary: The manufacturer makes some change in the functionality or configuration of the system, which is already in use. The change results in unpleasant or unintended consequences for one or more clients.

[Adapted from Patterns in IT Litigation: Systems Failure (1976-2000)]
Summary: The client buys a system from the vendor. Some time later, the client discovers that the system either no longer meet its needs or that the vendor/manufacturer will no longer support it.