Passlogix Sued for Misappropriation and Breach of Contract By 2FA Technology

NEW YORK, Nov. 12, 2010 /PRNewswire via COMTEX/ -- Passlogix Inc., a wholly owned subsidiary of Oracle Corporation (ORCL), is being sued by 2FA Technology for misappropriation and breach of contract.

The lawsuit (1:2008cv10986), pending in the United States District Court for the Southern District of New York since December 18, 2008, asserts, among other things, Passlogix engaged in illegal activities relating to the misappropriation of 2FA software.

2FA alleges that Passlogix's top executives, Mr. Marc Boroditsky, Passlogix's President and CEO, and Mr. Marc Manza, Passlogix Chief Technology Officer, orchestrated a conspiracy to take 2FA's software, deprive 2FA of earned royalties, and force 2FA into bankruptcy.

In the lawsuit, 2FA specifically alleges that Passlogix's senior engineers accessed 2FA's source code with the intent of incorporating 2FA's trade secrets into Passlogix's products. In internal emails that are part of the public record, Passlogix's senior developer states, "Shaun [2FA] checked in the mapping code, which I spent some time reviewing today." Mr. Manza then replies, "we don't need anything from 2FA but the mapping data [code]" and instructs his developer to "rewrite this code in C++ for our purposes." In late 2007, Passlogix released an "enhancement" to its v-GO AM product containing 2FA's misappropriated trade secrets, selling over a million licenses without compensating 2FA. In 2010, Passlogix gave away the v-GO AM product containing 2FA's trade secrets to more than 10,000,000 Passlogix licensees. Passlogix recently stated to the Court that they will remove 2FA's trade secrets from their products, but the damage is done.

Additional emails evidence Mr. Boroditsky stating: "I would like to end up in a position where we have all the [2FA] ip rights, no continuing payments or royalties," and a member of Passlogix's senior management team: "We should take the v-GO CM [2FA] source as we have it, once we accept it as GA, cut 2FA loose and move it to [company name removed] for all future development work." Then, Mr. Boroditsky hiding royalty payments due 2FA: "The deal is not closed yet so it does not need to be on the royalty report. That said, to avoid the 91k additional payment we will need to terminate [2FA] before [account name removed] closes..." Passlogix's continuing conspiracy reveals that Passlogix executives schemed to force 2FA into bankruptcy: "However, these guys are dead in the water without us," and "Worst case, they [2FA] go bankrupt, and who cares." "Although Oracle's market value increased more than $1 billion the day Oracle announced the acquisition, I can only assume Mr. Ellison is completely unaware that Oracle acquired Passlogix," said Mr. Greg Salyards, 2FA's President & CEO.

Mr. Salyards added, "We have the utmost respect for Mr. Ellison and Oracle. Once aware of this oversight, we are confident that Mr. Ellison and Oracle will do what they know is right." Go to 2FA's website to view the complete release: CONTACT: Bonny Green, +1-512-918-3200 SOURCE 2FA Technology Copyright (C) 2010 PR Newswire. All rights reserved -0- KEYWORD: New York INDUSTRY KEYWORD: FIN