Back in December Fenwick & West filed an unusual complaint on behalf of software firm SuccessFactors, alleging that Ottowa-based rival Halogen Software created a sham company — complete with fake employees and a phony website — in order to hear SuccessFactors’ sales pitch and gain access to private data. Halogen’s lawyers at Quinn Emanuel Urquhart & Sullivan acknowledged in a motion to dismiss in April that SucessFactors “tells an interesting story about false identities,” but they argued that the complaint “fails to allege the requisite elements that push the alleged business practices at issue ‘across the line from conceivable to plausible’ violations of the law.”
If that doesn’t sound like much of a denial, it’s because SuccessFactors’ allegations were apparently all too true. On Tuesday Halogen admitted to engaging in “false pretexting” and agreed to pay San Mateo, Calif.-based SuccessFactors an undisclosed sum, according to a joint press release. Halogen also stipulated to the permanent entry of an injunction from Oakland federal district court judge Judge Saundra Brown Armstrong prohibiting it from using information gleaned from the ruse.
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