ROSS shutting down last week is a cautionary example of how a legal tech company with lean cash reserves can be “cash poor” despite raising millions in outside funding. But while the legal research provider’s closure and cash flow issues surprised some, others noted its situation is common across the legal tech industry and the broader startup market.

On Dec. 11 ROSS Intelligence announced it was shutting down its legal research platform because of its legal battle with Thomson Reuters. In May Thomson Reuters filed a lawsuit in the U.S. District Court for the District of Delaware accusing ROSS of scraping copyrighted Westlaw material with a bot and using that data to train ROSS’ AI system. ROSS co-founder and CEO Andrew Arruda flatly rejected those accusations later in an online post. While Arruda continued to refute Thomson Reuters’ claim in the Dec. 11 announcement, he noted that due to the lawsuit, ROSS wasn’t able to raise additional investments and its funds were depleted.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]