2FA Predicts Oracle (ORCL) Forecast: Cloudy With a Chance of Sanctions

AUSTIN, Texas, Feb. 9, 2011 /PRNewswire/ -- 2FA currently has a motion before the Court in its case (1:2008cv10986) against Oracle and Passlogix for misappropriation and breach of contract that requests the Court impose severe sanctions for misconduct during the course of the litigation. The motion provides clear and convincing evidence detailing how Passlogix's executives: manufactured evidence, committed perjury, concealed evidence, made false representations to the Court, and failed to follow the Court's orders. Once approved, Passlogix and Oracle will face severe penalties and fines. The motion and the majority of the case between 2FA and Passlogix were recently sealed by the Court in December 2010.  

Following 2FA's November 2010 press release (http://www.prnewswire.com/news-releases/passlogix-sued-for-misappropriation-and-breach-of-contract-by-2fa-technology-107463898.html), Passlogix complained to the Court that 2FA's press release was merely an attempt to embarrass Passlogix's executives and that 2FA took statements made by Passlogix's executives out-of-context. Yet, rather than releasing the full context of the documents to the public, Passlogix requested the Court seal the record from public view. "I'm not aware of a 'context' in which being caught red-handed: stealing, lying, and scheming to force a partner into bankruptcy, is not embarrassing," says Greg Salyards, 2FA's President and CEO, adding, "Oracle is a public company, courts are public forums, the public has the right to know what these two companies have been up to, investors have the right to know what they are investing in. Oracle and Passlogix have a corporate responsibility to abide by the law and a corporate code of ethics to do what they know is right. Unfortunately, Oracle apparently lacks the discipline to do what it knows is right."  

In the face of a pending federal injunction designed to prevent Passlogix from selling software that 2FA alleges contains its trade secrets, Oracle elected to endeavor in fly-by-night tactics commonly employed by less scrupulous companies. In November 2010, Oracle representatives assured 2FA that Passlogix would be stronger and better resourced as a result of the acquisition. Less than two months later, Oracle terminated all but a few Passlogix employees, swapped-out Passlogix's branding for Oracle's, shutdown Passlogix's website, and announced that all new contracts will be on Oracle paper – essentially shuttering Passlogix, all in an attempt to skirt the looming injunction.  

"We had high hopes Oracle would do the right thing after acquiring Passlogix," said Salyards, adding, "Oracle and Passlogix are 'Engineered to Work Together.' Oracle and Passlogix worked together for the past three years to steal 2FA's intellectual property, deprive 2FA of earned royalties, and force 2FA into bankruptcy. Fortunately 2FA survived the onslaught and Passlogix left a blood trail that led us right to Oracle's doorstep."

Contact:  Bonny Green, (512) 918-3200

SOURCE 2FA