Algo slaps injunction on SunGard over use of confidential information

Canadian risk management systems provider Algorithmics has slapped an injunction on SunGard aimed at stopping its US-headquartered rival from using confidential information allegedly leaked to SunGard by an ex-Algorithmics employee.

Algorithmics filed claims to the Chancery Division of the High Court of Justice in London against SunGard Systems Ltd, SunGard Data Systems Inc and M. Rasche. M. Rasche is allegedly Markus Rasche, a former Algorithmics senior salesman in Frankfurt responsible for central Europe with particular focus on Germany, who now works for SunGard in London.

The claims were filed on January 9 through Algorithmics' lawyers Baker & McKinsey. It received the injunction on January 16 to prevent SunGard from using its confidential information, the Canadian company confirmed. But according to officials in the Chancery Division, SunGard had yet to acknowledge service of the claim, which, officially, restricts the public disclosure of the legal submissions.

A RiskNews source said the case centres around e-mails distributed to SunGard’s sales team by a SunGard employee. This email purportedly contained what appeared to be information from Algorithmics’ confidential client database, along with detailed proprietary technical descriptions of Algorithmics' products, an Algorithmics company analysis – including the company’s revenue targets for the year – and an analysis of the performance of Algorithmics employees. The SunGard employee allegedly asked SunGard’s sales team to contact these clients immediately and allegedly thanked Markus Rasche for the content included in the exchanges. The SunGard employee, SunGard and Algorithmics declined to confirm or deny the existence of these e-mails. Calls to Rasche at SunGard’s offices in London were not returned.

The injunction provides for the ceasing of all further use of Algorithmics’ confidential information, delivering up Algorithmics’ confidential information, cessation of dealings with individuals and/or clients in respect to breaches of Algorithmics’ confidential information, and ceasing any further breaches or inducing further breaches of Algorithmics’ confidentiality, the source said. An Algorithmics spokesman declined comment on the specifics of the injunction, stating, “On January 16, the court granted Algorithmics an injunction to stop SunGard from using confidential information belonging to us. And obviously we are pleased by the court’s decision. But this is part of an ongoing legal matter and we are not going to be able to discuss anything further.”

In response to RiskNews enquiries, a SunGard spokeswoman said the US company and Algorithmics planned to issue a joint statement on the matter later today.