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SuccessFactors Sues Softscape

March 12, 2008
Related Topics: Human Resources Management Systems (HRMS/HRIS), Miscellaneous Legal Issues, Ethics, Latest News
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HR software company SuccessFactors said Wednesday, March 12, that it has filed a lawsuit against rival vendor Softscape alleging false advertising, unfair competition and other claims.

In a statement, SuccessFactors said the suit stems from a “presentation recently anonymously e-mailed to many of SuccessFactors’ customers and prospects purporting to be authored by a former customer of SuccessFactors and containing numerous false, misleading and defamatory statements relating to SuccessFactors and its products and customer relationships.”

In a statement issued Wednesday, Softscape dismissed the suit as frivolous. “The facts in this case will speak for themselves,” Softscape said in a statement. “This is a frivolous public relations tactic without merit or foundation, and we will defend all of the claims vigorously.”

San Mateo, California-based SuccessFactors and Wayland, Massachusetts-based Softscape are among more than a dozen players in the fast-growing field of talent management software—tools for such key HR tasks as performance management, recruiting and employee development.

SuccessFactors said its suit, filed in the U.S. District Court for the Northern District of California, also alleges trademark infringement, computer fraud and abuse, defamation, trade libel and “intentional interference with prospective economic relations.”

SuccessFactors said it is seeking a court order prohibiting Softscape “from distributing false and misleading information about SuccessFactors, using SuccessFactors’ trademarks, accessing SuccessFactors’ computer systems without authorization, and wrongfully interfering with or disrupting SuccessFactors’ relationships with customers and prospective customers, and requiring it to issue corrective advertising advising every known recipient of the presentation and the public at large of its falsity.”

The company also said it is seeking general and punitive damages and restitution.

A copy of the complaint can be found here: http://www.successfactors.com/docs/complaint.pdf

Softscape’s response can be found here: http://softscape.com/us/pr2008/pr_08_0312_response.htm

—Ed Frauenheim

 

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