I TOLD you there was intrigue in the publishing industry!
A great account of the latest in this espionage lawsuit is given by Jason Fell of FOLIO magazine:
McGraw-Hill has filed a motion to dismiss five counts of misconduct brought against it in a lawsuit filed last month by Reed Construction Data, a unit of b-to-b publisher Reed Business Information. The suit charges corporate espionage, among other things.
The motion was filed Friday by McGraw-Hill in U.S. district court in New York.
Reed’s 60-page complaint alleges that McGraw-Hill’s Dodge Construction division unlawfully accessed confidential and secret trade information from RCD by hiring consultants to subscribe to RCD’s confidential data, using made up names and fake companies. It also alleges that Dodge manipulated the RCD information to create “misleading comparisons” between Dodge and RCD’s products and services “in an attempt to mislead the marketplace.”
McGraw-Hill’s motion requests that the court dismiss the counts alleging misappropriation of confidential information, tortious interference with prospective economic advantage, violation of New York General Business Law, violation of the Racketeer Influenced and Corrupt Organizations Act (RICO) and conspiracy to violate RICO.
The motion, however, did not request the dismissal of the other counts alleging fraud, misappropriation of trade secrets, unfair competition, monopolization, and others.
“We will address those allegations as part of our response to the entire lawsuit,” a McGraw-Hill spokesperson told FOLIO:. It was not immediately clear, however, exactly when or how the company would issue a formal response.
Construction President Out
On November 9, McGraw-Hill announced to staff that longtime McGraw-Hill Construction president Norbert Young had left the company. Glenn Goldberg, president of McGraw-Hill Information & Media would assume responsibility for the construction group, assisted by Robert Stuono, the group’s senior vice president and general manager.
The spokesperson declined to say if Young’s departure was related to the Reed lawsuit, saying that as a policy the company does not comment on personnel issues.