Credit Infonet Inc. Files Suit Against Radian Group
|June 24, 2002|
RIVERSIDE, Ohio, /PRNewswire/ -- Credit Infonet Inc. recently filed suit in Butler County, Ohio, against Radian Group Inc. (NYSE: RDN ). Through this suit, Credit Infonet estimates that it will seek actual and punitive damages in excess of $75,000,000. The suit alleges, among other things, that Radian Group Inc. has engaged in actions designed to obstruct and interrupt Credit Infonet's business as well as limit competition in the marketplace.
Credit Infonet's Butler County suit outlines a series of unfair business and legal tactics employed by Radian over the last eight months. The suit claims these series of events were aimed solely at detrimentally affecting Credit Infonet's business operations with the end goal of forcing Credit Infonet out of the mortgage services business. The suit further alleges that Radian has combined these tactics with a willingness to utilize widespread and ill-founded litigation as a corporate business policy. Commenting on the allegations outlined within the filing, Mr. Lee Midkiff, Credit Infonet Chief Operating Officer said, "This type of behavior is unacceptable and needs to face accountability within the legal system."
Credit Infonet and Radian have already been embattled in one suit filed in February of this year. In the Iowa District Court of Scott County, Credit Infonet sued Radian seeking injunctive relief preventing Radian from violating confidentiality and trade secret provisions of a marketing agreement that exists between the companies. Following a March 1, 2002, hearing, the Iowa District Court of Scott County granted Credit Infonet the injunctive relief it requested.
Radian has since filed multiple suits against parties connected to Credit Infonet. Since February 28th, 2002, Radian has filed suit against five entities associated with Credit Infonet including employees, contractors and its' principles. Legal proceedings associated with Radian and Credit Infonet, or parties connected to Credit Infonet, currently span three courts in two states. While multiple suits have been filed by Radian against parties working for, or doing contracting work with Credit Infonet, Radian has not filed suit against Credit Infonet directly. Credit Infonet's suit contends these tactics simply exemplify Radian's desire to use ill-founded litigation as a business tactic.
Expanding on Credit Infonet's claims that Radian is utilizing ill-founded litigation as a business policy, Midkiff added, "I find it ironic that when questioned about the American Land Title Association's (ALTA) suit against Radian in California State Court, Howard Yaruss, Radian's General Counsel, was quoted as saying, 'The way to compete in our country is to try to sell your product and not to bury someone with litigation to prevent them from competing. You don't try to sue them'. As Credit Infonet's suit demonstrates, Mr. Yaruss has no problem employing the same tactics he so vehemently denounces."
Source: Credit Infonet Inc.