(From ComputerWorld) IDG News Service - SuccessFactors is alleging that rival human-resources-software vendor Halogen Software concocted a fraudulent and covert scheme in order to obtain competitive information from it, according to a lawsuit filed in U.S. District Court for the Northern District of California.
Halogen, based in Ottawa, Canada, set up "a bogus 'mid-sized' company -- The Magnus Group -- replete with purportedly more than 500 employees and a sham website specially designed by an Ottawa design firm that has also worked with Halogen," according to SuccessFactors' complaint, which was filed in December.
Using the fake company as cover, one or more Halogen workers "falsely represented they were a legitimate sales prospect wishing to purchase software services from SuccessFactors," it adds.
An "intensive sales effort" by SuccessFactors, including a number of product demonstrations, ensued over several weeks in mid-2010, according to the complaint.
But on Sept. 16, the Magnus Group representatives abruptly said they were no longer interested, it states.
The Magnus-Group.com website listed an address in Valparaiso, Indiana, but SuccessFactors "believes that no company named Magnus Group has ever been at this property," which apparently once served as headquarters for a convenience store chain, according to the complaint.