Qualia accuses title startup Settlor of stealing trade secrets

Key Takeaways:

– Software provider Qualia is accusing former employee Krista Myers and startup Settlor of stealing trade secrets
– Qualia claims that Myers stole approximately 900 files containing sensitive information before resigning from her position
– The stolen files include plans for scale-up, software, customer contacts, product features, pricing methodologies, market research, and more
– Myers joined Qualia through the acquisition of Resware in 2021 and resigned in May 2023
– Qualia states that Myers was disgruntled with her employment and disagreed with the company’s business plans
– Qualia reached out to Myers to remind her of her confidentiality agreement but received no response
– Qualia discovered forensic proof of intellectual property theft in November 2023 and sent a letter to Settlor and Myers demanding the return of stolen data
– Myers and Settlor allegedly deleted all Qualia data within hours of receiving the letter
– Qualia is suing both Settlor and Myers for misappropriation of trade secrets, breach of contract, and intentional interference with a contract
– Qualia is seeking damages and injunctive relief and demanding a jury trial
– Qualia believes the lawsuit will expose the extent of the stolen materials and improper use by Settlor and Myers.

HousingWire:

Closing software provider Qualia is accusing a former employee and startup title production software firm Settlor of stealing trade secrets.

In a lawsuit filed on Tuesday in U.S. District Court in Denver, Qualia claims that its former senior manager of product at Resware Krista Myers, who is now a product manager at Settlor, secretly stole data from Qualia before she resigned from her position. The suit alleges that Myers then uploaded these files onto Settlor’s computer systems and used them to “unfairly compete against Qualia.”

Qualia claims that Myers stole roughly 900 files, which the firm said included “the plans for scale-up of ResWare, the software itself, key customer contacts, lists of actual and potential customers, specifications of future product features, customer experience and feedback data, research regarding new software upgrades and features, historic and planned customer pricing methodologies, market research and data, product roadmap documentation, and customer facing documentation.”

The plaintiff also states that as the former leader of the Resware team, Myers knew the value of the information she took.

Myers joined Qualia in 2021 through the firm’s acquisition of Resware from Adeptive Software, which closed in December 2020. Prior to the acquisition, Myers had been with Adeptive for nearly 10 years. According to the complaint, Myers resigned from her position at Qualia in May 2023, after she “secretly” interviewed for an accepted the position at Settlor. Qualia also claims that during her time at the firm, Myers was “highly disgruntled with her employment” and that she “openly disagreed with Qualia’s business plans for what was formerly ResWare.”

Settlor is a spin-off of Land Title Guarantee Company, but Qualia noted in its complaint that it is still investigating how much governance and oversight the title firm has over its title production software startup.

In the complaint, Qualia states that is reached out to Myers on Sept. 1, 2023, to remind her of her agreement to keep any confidential information and trade secrets private, which it says she ignored. Nearly two months later, in late November 2023, Qualia said that it found forensic proof that Myers had stollen intellectual property and trade secrets.

The complaint states that upon this discovery, Qualia sent a letter to Settlor and Myers on Dec. 1, 2023, in an effort to resolve matter. In the letter, Qualia asks Myers and Settlor to disclose and return the allegedly stolen data and it cautioned them against deleting or altering the files. Despite this warning, Qualia claims that within hours of receiving the letter, Myers and Settlor deleted all of the Qualia data she had uploaded to the Settlor system.

“Based on the facts currently known and in connection with its ongoing investigation, Defendants Myers’ and Settlor’s actions were not inadvertent, but rather intentionally and willfully undertaken as part of a larger plan, to quickly build a competing product by cutting corners and illegally using stolen Qualia data to do it,” the complaint states.

Qualia is suing both Settlor and Myers for misappropriation of trade secrets, and it is suing Myers for breach of contract, and Settlor for intentional interference with a contract. The company is asking for damages and injunctive relief, and it is demanding a jury trial.

“Qualia respects the rights of its employees to leave and work elsewhere, but cannot permit former employees or competitors to steal and use our Intellectual Property. Qualia attempted for weeks to resolve its legitimate concerns that Ms. Myers, a former employee, and her new employer, Settlor, had taken, used and destroyed hundreds of Qualia’s confidential documents and proprietary materials. When it became clear that informal resolution was not progressing, Qualia was forced to file a lawsuit. We believe this lawsuit will reveal the full extent of the confidential materials taken, and the breadth of the improper use by Settlor and Ms. Myers once she began working at Settlor.”

The defendants in the suit did not return a request for comment.

Source link

Property Chomp’s Take:

is an essential element in HTML coding that is used to create divisions or sections on a webpage. It is a versatile and powerful tool that allows web developers to structure and organize content effectively.

In recent news, closing software provider Qualia has filed a lawsuit against a former employee and startup title production software firm Settlor, accusing them of stealing trade secrets. According to the lawsuit, Qualia claims that its former senior manager of product, Krista Myers, secretly stole data from Qualia before resigning from her position. The suit alleges that Myers then uploaded these files onto Settlor’s computer systems and used them to “unfairly compete against Qualia.”

The stolen files include important information such as plans for scale-up, software specifications, customer contacts, pricing methodologies, market research, and product documentation. Qualia argues that Myers, as the former leader of the Resware team, was well aware of the value of this information.

Myers joined Qualia in 2021 through the firm’s acquisition of Resware from Adeptive Software. However, she resigned from her position in May 2023 and accepted a job at Settlor. Qualia claims that Myers was “highly disgruntled” with her employment and openly disagreed with the company’s business plans.

Settlor, a spin-off of Land Title Guarantee Company, is also under investigation regarding its governance and oversight over its title production software startup.

Qualia discovered evidence of the stolen intellectual property in late November 2023 and sent a letter to Settlor and Myers, requesting the return of the data. However, Qualia claims that within hours of receiving the letter, Myers and Settlor deleted all the stolen data from the Settlor system.

Qualia is now suing both Settlor and Myers for misappropriation of trade secrets, breach of contract, and intentional interference with a contract. The company is seeking damages and injunctive relief and is demanding a jury trial.

In response to the lawsuit, Qualia stated, “Qualia respects the rights of its employees to leave and work elsewhere, but cannot permit former employees or competitors to steal and use our Intellectual Property.” The company believes that the lawsuit will reveal the extent of the stolen materials and the improper use by Settlor and Myers.

As of now, the defendants in the suit have not provided any comments on the matter.

In conclusion,

is a crucial HTML element used in web development. However, in the case of Qualia and Settlor, it has become the center of a legal dispute involving the alleged theft of trade secrets. This case highlights the importance of protecting intellectual property and the potential consequences of misusing confidential information.

Leave a Reply

Your email address will not be published. Required fields are marked *