Software company’s complaint is also the subject of a misappropriation of trade secrets lawsuit
BRENTWOOD, Tenn., May 18, 2022--(BUSINESS WIRE)--Palinode, a leading provider of credit dispute resolution technology, has filed a member misconduct complaint against competing software company Provana with ACA International: The Association of Credit and Collection Professionals. ACA International, of which Palinode and Provana are both members, is a nonprofit trade association representing approximately 2,100 members in the receivables management, credit and collection industries.
Palinode’s complaint requests that ACA International immediately commence an investigation into Provana’s unlawful and unethical misconduct, and impose appropriate disciplinary action against Provana, including expulsion of Provana from ACA International. Palinode asserts that Provana’s actions violate four Canons of ACA International’s Code of Conduct: Canon I – member’s relationships with association peers, Canon II – member's business relationships, Canon IV – support of the collective membership, and Canon V – member's participation in the industry and the profession.
Provana’s conduct is also the subject of legal action that Palinode is pursuing against Provana and a former customer, Plaza Services (also an ACA International member), for alleged misappropriation of trade secrets. According to the lawsuit, Palinode is seeking damages and a permanent injunction, arising from Provana's scheme to, via Plaza, unlawfully access and use trade secrets and confidential information regarding Palinode's Sonnet software.
"While Palinode understands that ACA International misconduct complaints are rare, we believe that Provana’s actions warrant complaint and that ACA International should immediately conduct an investigation," said Palinode Co-Founder and CEO Joe Storey. "Provana hasn’t taken any responsibility for its actions – in unlawfully accessing our Sonnet platform to help fast-track the development of its competing IPACS product – and instead continues to market IPACS to Palinode’s customers."
Palinode’s ACA International complaint against Provana comes as Provana and Plaza Services have indicated they will not be presenting a united front in answering Palinode’s lawsuit against the two companies.
Plaza Services has filed a cross-claim for indemnity against Provana, and has claimed it was not aware of Provana’s activities and was unwittingly used by Provana. Plaza asserts that Provana is responsible for any damages awarded to Palinode for which Plaza is determined to be liable.
Meanwhile, Provana has counterclaimed against Plaza on Plaza’s cross-claim. Provana asserts that Plaza breached a Plaza-Provana agreement by misappropriating Palinode’s trade secrets, as alleged by Palinode, and that Provana has suffered damages, including business interruption damages, reputational damage and legal costs.
"Palinode’s lawsuit against Provana and Plaza is still before the courts, but that shouldn’t stop ACA International from processing and addressing Palinode’s misconduct complaint without delay," added Storey. "We have faith in the court system and ACA International to arrive at a just conclusion to Provana’s wrongdoing."
Palinode customers and prospective customers with any questions about the Sonnet platform are encouraged to contact Palinode at 866-821-4484 or email@example.com.
Civil Action No. 1:21-cv-01378-MN-SRF (D. Del.)
Palinode is a Brentwood, Tennessee-based software development company that serves data furnishers throughout the United States. Palinode’s industry-leading product, Sonnet, helps customers achieve greater compliance and productivity by streamlining the credit dispute investigation process through automation.
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