Interesting post on CFLO from RB:
From tokyoschmoe (no link provided but looks legit)
Be wary of this one. I pulled this off the CFLO S-1:
Our business could be seriously harmed by the Nokia IP litigation.
On September 16, 1999, Nokia IP filed a lawsuit in Santa Clara County Superior Court naming CacheFlow Inc., Brian NeSmith, our President and Chief Executive Officer and a director, and Alan Robin, our Senior Vice President of Sales, as defendants. Messrs. NeSmith and Robin were officers and employees of Ipsilon Networks, Inc., which was acquired by Nokia in December 1997.
Following the acquisition, Messrs. NeSmith and Robin became employees of Nokia. Nokia's allegations against us include misappropriation of trade secrets, unfair competition and inducing breach of contract. Nokia's
allegations against Messrs. NeSmith and Robin include breach of contract, misappropriation of trade secrets and unfair competition and, with respect to Mr. Robin only, breach of fiduciary duty. Nokia's claims are based upon Nokia's allegation that Mr. NeSmith has violated a non-competition and non-solicitation provision contained in his employment agreement with Nokia and that Mr. Robin has violated a non-solicitation obligation to Nokia. Nokia is seeking compensatory and punitive damages, a decree that the defendants' alleged acts were and are unfair acts of competition, orders restraining and enjoining the defendants from disclosing or using Nokia's trade secrets or confidential and proprietary information and acting in a manner that violates Messrs. NeSmith's and Robin's contractual and fiduciary duties to Nokia, attorneys' fees and other specified damages. This litigation was only recently filed and we are presently evaluating these claims. We and the other defendants believe that there are meritorious defenses to the asserted claims and intend to defend the litigation vigorously. However, the outcome of litigation is inherently unpredictable and the results of the litigation may not be favorable to us or the other defendants. In such case, our business could be seriously harmed. Regardless of the ultimate outcome, the litigation could result in substantial expense to us and significant diversion of effort by our managerial and other personnel. |
