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SuccessFactors v. Softscape

December 29, 2008

The defendant repeatedly accessed our client's computer networks without authorization, stealing information that it made into a "hit piece" and sent anonymously to SuccessFactors' customers and prospects as part of a campaign to impugn the company. Several analysts downgraded SuccessFactors based on the hit piece. Through an internal investigation, we determined the author was a competitor. At first, they denied sending the piece, so we filed suit and successfully obtained TRO and preliminary injunction against competitor (see 544 F. Supp. 2d 975 (N.D. Cal. 2008)), and then dismissed second suit filed in Massachusetts. Case ultimately settled on highly favorable terms, including (a) large monetary payment well in excess of fees and costs, (b) permanent injunction, and (c) competitor-issued press release admitting liability.