SuccessFactors v. Halogen Software

June 29, 2011

Our client, SuccessFactors, was the target of false pretexting scheme, whereby a direct competitor manufactured a phony prospective customer to inappropriately obtain SuccessFactors' business information to learn about SuccessFactors' services and product features, demonstrations, pricing, and sales processes. After exposing the false pretexting, we obtained a very favorable settlement payment for our client and a permanent injunction prohibiting the competitor from using the files and information it procured. As part of the settlement agreement, the competitor also was required to issue a press release publicly acknowledging that it engaged in false pretexting, implement employee training and new company guidelines to ensure that it would not engage in similar behavior again, and destroy all wrongfully obtained data.