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REUTERS ACCUSSED OF UNFAIR BUSINESS PRACTICES; CAPITAL MARKET DECISIONS FILES LAWSUIT AGAINST REUTERS FOR BREACH OF CONTRACT, INTERFERENCE

 NEW YORK, Nov. 5 /PRNewswire/ -- Capital Market Decisions Inc. of Stamford, Conn. today filed a lawsuit against Reuters Information Systems, Inc. in State Supreme Court in New York. The lawsuit alleges that Capital Market has, since 1989, been developing computer based analytics systems for Reuters pursuant to a comprehensive development contract. One such system, an analytics system used to allow financial managers to make trading and investment decisions in the global fixed income markets, was successfully developed by Capital Market pursuant to the contract and has been marketed by Reuters since 1991 as its Decision 2000 system. There are currently over 500 systems in use worldwide.
 The Petition filed in Court today by Capital Market charges that Reuters, having recognized the enormous significance to its business of analytics systems, has attempted to break its contract with Capital Market so that Reuters won't have to pay contract-mandated royalties through June 30, 1999. The lawsuit further alleges that Reuters has been intentionally causing disruptions among Capital Market's work force so that Reuters can try to hire away Capital Market's experienced, professional staff to help Reuters build a royalty-free system to replace Decision 2000.
 In late September, the Petition alleges, Reuters confronted Capital Market with a proposed buy-out and a notice of termination of the contract. At that time Capital Market was told that it had to choose one or the other. The Reuters-dictated terms would have required numerous Capital Market employees to sign three-year employment contracts with Reuters, and would have required Capital Market's President, Dr. J. Stephen Levkoff, to agree to a five-year non-competition restriction. When Capital Market objected to these terms as well as the financial terms, Reuters effected what the Petition alleges was a de facto termination of the relationship.
 First, in late October 1993, Reuters unilaterally and without prior notice to Capital Market severed telecommunications links between the two companies. This electronic "cut-off" severely compromised Capital Market's ability to perform its development work under the Contract. Then, in early November, after threatening to cut off all contract pay- ments, Reuters unilaterally reduced them "drastically." In addition, the Petition alleges, Reuters has begun to hire away Capital Market employees.
 Following the electronic cut-off, Capital Market served a demand for arbitration in New York with the American Arbitration Association seeking, among other relief, $30 million in damages. In papers filed today in the lawsuit, Capital Market said it was seeking a preliminary injunction in order to stave off financial ruin caused by Reuters' breaches of contract and acts of tortious interference, so that Capital Market could stay in business pending the outcome of the arbitration it has requested.
 Capital Market is located at 333 Ludlow Street, Stamford, Conn. 203-327-6083. It currently has 40 employees. Its president is Dr. J. Stephen Levkoff, who held senior management positions at Smith Barney; Donaldson, Lufkin & Jenrette; and Colonial Management, among other positions in the securities business.
 Capital Market is represented by Kenneth A. Plevan and John B. Kennedy of the New York office of Skadden, Arps, Slate, Meagher & Flom.
 -0- 11/5/93
 /CONTACT: Bob Stone, 203-327-6083 or (home) 914-591-5534 or Phil Fried, 212-922-0900 or (home) 516-424-4618, both of the Dilenschneider Group/
 (RTRSY)


CO: Reuters Information Systems, Inc.; Capital Market Decisions Inc. ST: New York, Connecticut IN: PUB SU:

GK-LG -- NY049 -- 1275 11/05/93 14:05 EST
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Date:Nov 5, 1993
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