Ottawa, Ontario — July 5
Halogen Software Inc., a talent management provider, announced today the conclusion of SuccessFactors’ litigation against its direct competitor, Halogen. As part of the settlement, Halogen acknowledges that it engaged in false pretexting.
Specifically, Halogen manufactured a phony prospective customer, “The Magnus Group,” to obtain SuccessFactors’ business information to learn about SuccessFactors’ services and product features, product demonstrations, pricing and sales processes. In connection with the settlement Halogen agreed to pay an undisclosed payment to SuccessFactors, a cloud-based SaaS software provider. Halogen also agreed to allow entry of a permanent stipulated injunction, to destroy wrongfully obtained data, and to implement employee training along with new company guidelines to ensure that Halogen does not again engage in similar behavior.
“SuccessFactors has been extremely concerned about safeguarding its confidential information, so we’re pleased to have successfully resolved this matter of nearly seven months,” said Doug Dennerline, SuccessFactors’ president.
The legal dispute originated in early September 2010 when an alleged potential customer, The Magnus Group, ended discussions with SuccessFactors after several weeks of contact and purported interest in SuccessFactors’ products, pricing and services. By posing as a prospective customer and repeatedly expressing interest in purchasing SuccessFactors’ product, an alleged representative of The Magnus Group received wrongfully obtained SuccessFactors’ business information that SuccessFactors would never have disclosed to a competitor.
SuccessFactors learned that Halogen was the creator of the phony Magnus Group company. SuccessFactors filed a lawsuit Dec. 2, 2010, against Halogen in the U.S. District Court for the Northern District of California (Case No. CV10-05471) for Intentional Interference with Prospective Economic Relations, Conversion, Fraud, and Unfair Competition. On Dec. 9, 2010, the parties stipulated to an order that Halogen was prohibited from using any of the files or information procured through its use of The Magnus Group. As part of this settlement, Halogen agreed that the provisions of the stipulation would become permanent, as part of a stipulated judgment.
Source: Halogen Software Inc.
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