Omnesys Technologies, Inc. Seeks $250 Million in Damages from Refinitiv Subsidiary
Alleges underreporting of usage of software licensed in Indian financial market
Sep 16, 2019, 00:00 ET
NEW YORK, Sept. 15, 2019 /PRNewswire/ -- Omnesys Technologies, Inc. ("Omnesys") announced today that it has informed the New York State Supreme Court, Rockland County ("the Court"), that Omnesys believes that Refinitiv subsidiary F&R India Products and Services Private Limited ("F&R") of Mumbai, India, has systematically underreported its usage of software licensed from Omnesys, failed to provide certified usage reports required by the license and misstated the impact of Omnesys' potential termination of the software license as being "catastrophic" for the Indian market.
F&R is seeking to prevent Omnesys from terminating the operation of the Omnesys messaging software, claiming in Court filings that such termination would cause "catastrophic harm", that "nearly 10 million investors will be unable to transact in the Indian market" and "that is nearly one-third of the total investor base in all of India." Based on F&R's disclosure of 10 million users, Omnesys estimates that damages from F&R could exceed $250 million due to F&R underpayments of software fees and royalties since 2013.
Omnesys responded to the Court that no "catastrophic harm" will come to the Indian financial market from termination of its software and that it alleges that F&R's deliberate continuing defaults under the parties' Software License Agreement have caused the current situation, and that F&R's material breaches of the License Agreement clearly permit Omnesys to terminate use of the software immediately.
The Omnesys messaging software has powered the Omnesys NEST trading system for institutional and retail brokers and their account holders, proprietary traders, sovereign funds and exchanges in India since 2004. Omnesys alleges that since August 2013, when Refinitiv predecessor Thompson Reuters purchased the Indian provider of the Omnesys NEST trading system, the usage statistics for the Omnesys messaging software have been grossly underreported and intentionally not certified, as required by the Software License, resulting in continuous underreporting and underpayment of software fees and royalties due to Omnesys. Omnesys advised the Court in its filings that it properly notified F&R of its defaults at least four separate times starting in October 2018 and then took action to terminate the Software License only this past June, when F&R continued to ignore the multiple default notices and Omnesys' demands for certified usage statements.
About Omnesys Technologies, Inc.
Omnesys Technologies, Inc., is a privately-held leading provider of high speed, high volume, low latency, edge-of-the-art middleware and financial exchange connectivity software. It is headquartered in Orangeburg, New York.
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Omnesys Technologies, Inc.: |
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Jonathan Walden |
(845) 735-5000 |
SOURCE Omnesys Technologies, Inc.
