DocMagic Files Amended Complaint Against Ellie Mae

Posted by Orb Staff on May 13, 2010 No Comments
Categories : Residential Mortgage

DocMagic Inc., developer of DocMagic, says it has filed an amended complaint in the District Court for the Northern District of California against Ellie Mae, a former reseller of DocMagic loan documents and a former ePASS partner.

In August 2009, DocMagic filed two lawsuits against Ellie Mae: one in federal court for antitrust violations, intentional interference with contractual relationships, interference with prospective economic advantage and unfair competition; and one in San Francisco Superior Court seeking a permanent injunction against Ellie Mae arising out of what DocMagic calls Ellie Mae's misuse of DocMagic's proprietary information in connection with the Ellie Mae Docs system.

At the urging of the federal court judge, the parties have since agreed to consolidate the state case claims into federal court and to dismiss the state case without prejudice.

The amended complaint sets forth 14 federal and state claims, expanding on the allegations and claims initially made against Ellie Mae. The significant amendments include an expansion of antitrust allegations and claims, the addition of claims under the Lanham Act for unfair competition, and false advertising and copyright infringement claims, among others.

"Now that we have had the opportunity to review Ellie Mae's financial performance in its IPO prospectus filed with the Securities Exchange Commission, it appears that the only financial success Ellie Mae can claim in the last two years is tied directly to the document-preparation business, much of which is based on business and intellectual property stolen from DocMagic and others in violation of federal and state laws," Dominic Iannitti, president and founder of DocMagic, said in a statement.

SOURCE: DocMagic Inc.

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