Softchoice Sues En Pointe for Illegal Business Practices

Softchoice Corporation, a value-added reseller of information technology in the United States and Canada, has filed pleadings in civil lawsuits in Minnesota and Virginia alleging that En Pointe Technologies, Inc. has engaged in illegal and unethical business practices designed to enable En Pointe to compete unfairly in the marketplace.

In the court filings Softchoice alleged that En Pointe engaged in a scheme to "misappropriate Softchoice’s confidential information, trade secrets, and customer relationships and use them to injure Softchoice." As part of a campaign to injure Softchoice’s business, En Pointe recruited and hired Softchoice sales personnel with the expectation of using confidential Softchoice data, the suits state.

"...[O]ver the past several years En Pointe has relied on a ’business model’ of raiding competitors in general, and plaintiff Softchoice in particular, of experienced sales representatives," the suits state. "That model has permitted En Pointe to reap the benefits of an experienced, knowledgeable sales force without making the investment in time and resources required to develop such a sales force."

Individual lawsuits are pending against former employees for breach of contract agreements in Minnesota, Missouri, Nebraska, North Carolina and Virginia. En Pointe has raided Softchoice personnel a total of 22 times over the last two years.

The motions filed, which seek to add En Pointe as a defendant to cases that currently name several former Softchoice employees as defendants, were filed in Hennepin County District Court (Minneapolis) and in the Circuit Court for the City of Norfolk, Va.

"Softchoice believes that competition in the information technology industry benefits customers, but that competition must be fair and legal," said Kirsten Thompson, General Counsel of Softchoice Corporation. "Our goal is to put a stop to this illegal behavior and force En Pointe to obey federal and state laws."

"Softchoice prides itself on its hard-earned reputation for ethical behavior and corporate responsibility," Thompson added. "We take seriously the confidential information shared with us by our customers and vendors, and will take every legal action available to us to protect the confidential information entrusted to us and the high-level of confidence we have earned in the marketplace."

In addition to seeking monetary damages from En Pointe, the actions seek a permanent injunction against former Softchoice employees who violated the terms and conditions of their contracts and confidentiality agreements with Softchoice when they solicited Softchoice customers to do business with En Pointe. Softchoice has won injunctions and temporary restraining orders against a number of former employees now working for En Pointe in Minnesota, Virginia and Missouri and also has actions pending in North Carolina and Nebraska.

The suits note that En Pointe, while encouraging Softchoice employees to ignore their non-solicitation agreements, has agreements in place with it own employees that ban such activity: "Unable to create sufficient revenue through organic growth of its business, En Pointe has chosen to increase its revenue by stealing the very kind of confidential business relationships it forbids its own employees even to discuss with others."

 [June 26, 2008]

Send this IT news to a friend
Recipient :
(enter the e-mail address of the recipient)

(enter your name)

(enter your e-mail address)


Other IT news about Softchoice

  • Softchoice finds 21% of servers still running on Windows Server 2003 (June 18, 2015)
  • Achievers Names Softchoice one of North America’s Most Engaged Workplaces (January 22, 2015)
  • Softchoice Study Finds Businesses that Embrace SaaS Apps Grow Faster and Have Happier Employees (December 3, 2014)
  • Softchoice Awarded Major Contract Under NASA SEWP V Program (October 20, 2014)
  • Softchoice Study Reveals Why Most Collaboration Technology Implementations Fail (October 8, 2014)
  • Softchoice Analysis Finds Businesses Unprepared for Windows Server 2003 End of Life (September 25, 2014)
  • Softchoice Celebrates 10 Years of TechCheck Assessments (August 20, 2014)
  • Softchoice Claims Three Microsoft Canada IMPACT Awards (December 8, 2011)
  • Softchoice Study Finds ’Floodgates’ Opening on Corporate Windows 7 Deployments (Infographic) (December 6, 2011)
  • Softchoice Named ’Software Asset Management Partner of the Year’ at Microsoft IMPACT Awards (November 30, 2010)
  • Softchoice Analysis Shows 77% of Organizations Could Face Security Risks Due to Windows XP SP2 Support Retirement (June 23, 2010)
  • Softchoice Reports Progress on Refinancing (November 28, 2008)
  • Softchoice Announces Cost-Reduction Initiative (October 22, 2008)
  • Softchoice Achieves Cisco Silver Partner Status in Canada (August 19, 2008)
  • Softchoice Named One of Canada’s "Best Workplaces" Three Years in a Row (April 29, 2008)
  • Softchoice Launches World’s First Fully Searchable Online ’Green’ IT Product Listing (April 23, 2008)
  • Softchoice Sees Big Opportunity in Microsoft Online Services (March 7, 2008)
  • Softchoice Corporation Acquires Optimus Solutions (January 4, 2008)
  • Softchoice Corporation Acquires Software Plus (December 13, 2007)
  • Softchoice Q3 EPS Grows 157 Percent (November 12, 2007)
  • Softchoice and Brains II Announce Partnership to Support NexInnovations Customers (October 17, 2007)
  • Softchoice Q2 Net Income Increases 53 Percent (August 13, 2007)
  • Softchoice First Quarter Net Income Doubles (May 7, 2007)
  • Softchoice Named CDN’s Top Solution Provider Second Year Running (May 3, 2007)
  • Softchoice Named One of Canada’s "Best Workplaces" for Second Year Running (April 24, 2007)

    Website based on SPIP, an Open Source program under GNU/GPL licence