Morningstar and Business Logic Pre-Trial Conferences Set for Upcoming Trial: Morningstar's 401(k) Retirement Account Software at Stake
CHICAGO, Feb. 12, 2014 /PRNewswire/ -- Business Logic Corporation, a pioneer in the 401(k) retirement managed accounts software industry, announced today that pre-trial conferences are scheduled in its lawsuit against Morningstar (MORN) for June 27, 2014, with a jury trial to follow starting July 7, 2014. According to recent SEC filings, Business Logic is seeking in excess of $80 million in damages, an amount that may be tripled under Illinois law, and an injunction prohibiting Morningstar from using its 401(k) managed accounts software.
In October 2013 the Court ruled that despite a contractual prohibition, Morningstar had reverse engineered Business Logic's software and that Morningstar used Business Logic's confidential information despite the fact that Morningstar was "not allowed or authorized to use Business Logic's confidential information … to design and develop software."
Business Logic sued Morningstar and Morningstar's wholly-owned subsidiary, Ibbotson, for violating the terms of its reseller agreement and misappropriating Business Logic's confidential information and trade secrets to design and develop its own 401(k) retirement account software. The allegations stem from a 2003 agreement in which Ibbotson agreed to re-sell Business Logic's 401(k) retirement portfolio management software.
In 2006, Morningstar acquired Ibbotson. The next year, Morningstar told Business Logic it would build its own software, and Morningstar ceased re-selling Business Logic's software in 2009. For the last decade, managing retirement accounts has been an area of rapid growth in the retirement asset management industry, with providers such as Financial Engines (FNGN) seeing significant growth.
A jury trial will begin July 7, 2014 at the Richard M. Daley Center in the Circuit Court of Cook County, Illinois. Bill Patterson, General Counsel for Business Logic stated, "We are confident the evidence shows Morningstar misappropriated our trade secrets and look forward to being made whole."
About Business Logic: Business Logic is a 401(k) managed accounts software company servicing the financial services industry. In 2003, Business Logic was the first company to provide software that could automatically manage an investor's retirement account. The software delivers financial guidance and advice to investors with regular retirement plans such as 401(k)s.
SOURCE Business Logic