SyQuest Pursues Lawsuit Against Castlewood Systems Inc.; Suit
Claims That Firm Misappropriated Trade Secrets
Business Wire - November 17, 1997 08:16
FREMONT, Calif.--(BUSINESS WIRE)--Nov. 17, 1997--SyQuest Technology Inc. (Nasdaq/NMS:SYQT)
Monday announced that it is aggressively pursuing the lawsuit it filed in June of this year in the Santa Clara County
Superior Court against Castlewood Systems Inc. for misappropriation of trade secrets, breach of fiduciary duty, unfair
competition, constructive trust and other causes of action.
Among the named defendants are Syed Iftikar, founder and former CEO of SyQuest, and certain other former SyQuest
employees now working with Castlewood.
The suit alleges, among other things, that Castlewood has capitalized on SyQuest's innovation and technological
leadership through the unauthorized use of confidential and proprietary technology developed by SyQuest in connection
with its new generation of high-capacity removable disk drives.
In view of the serious nature of the allegations contained in the complaint, SyQuest has requested and obtained
expedited discovery from the court. The company believes that recent Castlewood claims that it is ready to ship
product, just 14 months after its formation, provide substantial evidence of trade secret misappropriation as alleged in
the complaint.
SyQuest intends to seek and obtain a preliminary injunction preventing Castlewood from using SyQuest's proprietary
trade secrets and shipping products incorporating SyQuest intellectual property.
"SyQuest has invested substantial amounts of time and money in developing its new generation of products and in
protecting its intellectual property. We will continue to take all steps necessary to protect the company's investment
from any and all who would misappropriate our intellectual property," said Ed Harper, president and CEO of SyQuest.
About SyQuest
Based in Fremont, SyQuest Technology invented the high-performance cartridge category. Since its inception in
1982, the company has shipped more than 16 million cartridges which people use to hold their ideas and creations.
This news release contains forward-looking statements that involve risks and uncertainties, including competition in the
marketplace for the company's products, and other risks detailed from time to time in the SEC reports filed by SyQuest,
including its most recent reports on Forms 8K, 10K and 10Q.
SyQuest is a registered trademark, and the SyQuest logo is a trademark of SyQuest Technology Inc. URL:
syquest.com .
CONTACT: Miller/Shandwick Technologies
Anthony Sanzio, 310/203-0550
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