Wednesday, March 12, 2008

SoftScape calls suit by competitor SuccessFactors 'frivolous'

A California software company reports filing a lawsuit against Wayland-based Softscape Inc., alleging that Softscape initiated a negative misinformation campaign by sending e-mails to a competitor's customers.

SuccessFactors Inc. filed the suit in U.S. District Court for the Northern District of California, stemming from a presentation sent to SuccessFactors' customers and prospects. The presentation, ostensibly sent by a former customer of SuccessFactors but allegedly sent by Softscape, contains "numerous false, misleading and defamatory statements relating to SuccessFactors' technology, products and customer relationships," SuccessFactors said.

Softscape officials didn't return phone messages seeking comment. But spokeswoman Hillary Ives issued a news release that said: "The facts in this case will speak for themselves. This is a frivolous public relations tactic without merit or foundation, and we will defend all of the claims vigorously. The SEC maintains that publicly traded companies have the fiduciary obligation to their shareholders and the marketplace to disclose absolute facts. As a profitable and recognized category leader in the human capital management industry, our focus is not competitors. Our focus is on continuous product innovation and maintaining the highest customer satisfaction and retention rates."

Both companies develop human resources software.

SuccessFactors is seeking a court order prohibiting Softscape from "distributing false and misleading information about SuccessFactors, using SuccessFactors' trademarks, accessing SuccessFactors' computer systems without authorization, and wrongfully interfering with or disrupting SuccessFactors' relationships with customers and prospective customers, and requiring it to issue corrective advertising advising every known recipient of the presentation and the public at large of its falsity."

SuccessFactors also seeking general and punitive damages and restitution.

During 2007, SuccessFactors posted a $75.4 million net loss on revenue of $63.3 million.