MicroStrategy Wins Key Court Ruling Against Actuate Corporation
Actuate Fails in Attempt to Avoid November 4th Trial for Alleged Theft of Trade Secrets and Conspiracy
McLean, Va., (August 05, 2002) –
MicroStrategy® Incorporated (NASDAQ: MSTRD), a leading worldwide provider of business intelligence software, today announced a significant step forward in its lawsuit against rival Actuate Corporation (NASDAQ: ACTU). The lawsuit, which was filed in June 2001, alleges that Actuate and two of its senior software engineers engaged in a conspiracy to misappropriate valuable trade secrets belonging to MicroStrategy and then used those trade secrets in the design and development of Actuate’s newly released product, Actuate 6.
On August 2, 2002, the Circuit Court for Fairfax County, Virginia, denied Actuate’s motion for summary judgment, in which Actuate was seeking to have the case against it thrown out on the ground that the charges against it were not sufficiently specific. The Court ruled that MicroStrategy had met its burden to identify specifically its trade secrets and confidential information that it alleges have been misappropriated by Actuate in the design and development of Actuate 6. Trial is scheduled to commence on November 4, 2002. Among the relief that MicroStrategy is seeking is an injunction blocking the further marketing and sale of Actuate 6, a constructive trust in favor of MicroStrategy on all of Actuate’s profits generated from the sale of Actuate 6, and treble damages.
“We are pleased with the Court’s ruling,” said Jonathan F. Klein, MicroStrategy’s Vice President, Law and General Counsel. “We believe that Actuate has misappropriated our trade secrets and confidential information and look forward to proving it at trial in November.”
About MicroStrategy
Leadership in a Critical Market: Founded in 1989, MicroStrategy is a worldwide leader in the increasingly critical business intelligence software market. Large and small companies alike are harnessing MicroStrategy’s business intelligence software to gain vital insights from their data to help them proactively enhance cost-efficiency, productivity and customer relations and optimize revenue-generating strategies. MicroStrategy’s business intelligence platform offers exceptional capabilities that provide organizations — in virtually all facets of their operations — with user- friendly solutions to their data query, reporting, and advanced analytical needs, and distributes valuable insight on this data to users via Web, wireless, and voice. PC Magazine selected MicroStrategy 7(TM) as the 2001 “Editors’ Choice” for business intelligence software.
Enterprise-Class Business Intelligence: MicroStrategy 7i(TM) is a truly integrated, enterprise-class, Web-based business intelligence platform. With MicroStrategy 7i, enterprises can now standardize on one business intelligence platform and deploy high-value business intelligence enterprise-wide. MicroStrategy 7i’s configurable query, reporting, and OLAP Web interface is designed to support all users, from casual report viewers to power analysts.
Diverse Customer Base: MicroStrategy’s customer base cuts across industry and sector lines, with over 1,500 enterprise-class customers, including Lowe’s Home Improvement Warehouse, AT&T Wireless Group, Wachovia and GlaxoSmithKline. MicroStrategy also has relationships with over 400 systems integrators and application development and platform partners, including IBM, PeopleSoft, Compaq, and JD Edwards.
MicroStrategy is listed on Nasdaq under the symbol MSTR. For more information on the company, or to purchase or demo MicroStrategy’s software, please visit MicroStrategy’s Web site at http://www.microstrategy.com.
This press release may include statements that may constitute “forward- looking statements,” including its estimates of future business prospects or financial results and statements containing the words “believe,” “estimate,” “project,” “expect” or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results of MicroStrategy Incorporated and its subsidiaries (collectively, the “Company”) to differ materially from the forward-looking statements. Factors that could contribute to such differences include: the Company’s ability to secure financing for its current operations and long-term plans on acceptable terms; the ability of the Company to implement and achieve widespread customer acceptance of its MicroStrategy 7i software on a timely basis; the Company’s ability to recognize deferred revenue through delivery of products or satisfactory performance of services; the ability of the company to satisfy the conditions to the closing of the preferred stock restructuring; the ability of the company to effect the sale of non-core assets on reasonable terms; continued acceptance of the Company’s products in the marketplace; the timing of significant orders; delays in the Company’s ability to develop or ship new products; market acceptance of new products; competitive factors; general economic conditions; currency fluctuations and other risks detailed in the Company’s registration statements and periodic reports filed with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
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Marc Brailov
MicroStrategy Incorporated
(703) 770-1670
mbrailov@microstrategy.com
Source: MicroStrategy