Morningstar goes to trial in intellectual property lawsuit

Business Logic Corp. alleges research firm illegally replicated its retirement managed accounts software

Jun 24, 2014 @ 1:19 pm

By Joyce Hanson

A trial is scheduled to start July 7 in Chicago to determine if investment research firm Morningstar Inc. illegally replicated software owned by Business Logic Corp.

Business Logic, a 401(k) managed accounts software company, is suing Morningstar for breach of contract and misappropriation of trade secrets. It is requesting compensatory damages of $64.3 million.

Business Logic, a firm with 25 employees and now part of NextCapital Group Inc., claims that Morningstar and Ibbotson Associates Inc., a Morningstar company, misappropriated Business Logic's trade secrets over the course of two and a half years, starting in 2007. The lawsuit was filed in 2009.

“Trade secret protections are very valuable for startup companies and other innovators, and these companies ought to expect that their contracts will be honored,” said NextCapital attorney and chief operating officer Bill Patterson.

Morningstar spokeswoman Alexa Auerbach declined to comment on the particulars of the case prior to the trial. “We prefer that the case be heard in court,” she said.

The Business Logic suit involves Morningstar's managed accounts platform for retirement plan participants.

(Correction: An earlier version of this story incorrectly stated that HelloWallet Holdings Inc. resided on the Morningstar managed accounts platform.)

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

INTV

Why some retirement plan advisers think Fidelity is invading their turf

InvestmentNews editor Frederick P. Gabriel Jr. and reporter Greg Iacurci talk about this week's cover story that looks at whether Fidelity Investments is stepping on the toes of retirement plan advisers.

Latest news & opinion

Is Fidelity competing with retirement plan advisers?

As the Boston-based mutual fund giant expands the products and services it brings to the retirement market, some financial advisers say the firm is encroaching on their turf.

Gun violence hits investment strategies, sparks political debates with advisers

Screening out weapons companies has limited downside.

Whistleblower said to collect $30 million in JPMorgan case

The bank did not properly disclose that it was steering asset-management customers into investments that would be profitable for JPMorgan Chase.

Social Security underpaid 82% of dually entitled widows and widowers

Agency failed to tell survivors that they could switch to a higher retirement benefit later.

If Finra eases firm oversight of outside business activities, broker-dealers could lose revenue

Brokerage firms would no longer be able to charge reps for supervising nonaffiliated RIAs.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print