3/31/2003 - Lantronix (Nasdaq:LTRX) announced that it filed a complaint in Connecticut state court seeking to put a stop to Logical Solutions, Inc.’s (LSI) unauthorized use of Lantronix trademarks and trade secrets in violation of the agreements integral to the acquisition by Lantronix of Lightwave Communications, Inc. Lantronix also asks the court to prevent LSI’s founders from violating the acquisition-related non-competition agreements.
The complaint alleges that LSI and eight of its officers, directors and employees have illegally used technologies Lantronix acquired in the 2001 purchase of Lightwave Communications, Inc. to market products and services for LSI. The four LSI officers and directors named in the complaint – David B. Cheever, Ross D. Capen, Kevin F. Keefe and Michael L. Canestri – are former owners of Lightwave and became employees of Lantronix after the acquisition. They left Lantronix in 2002.
The complaint further alleges that these four officers and directors breached their employment agreements, confidentiality agreements and non-competition agreements with Lantronix and that they and LSI misappropriated proprietary technology to market products that compete with certain products sold by Lantronix. According to the complaint, LSI also has used the Lightwave name, which is now owned by Lantronix, to market its own products and services.
Lantronix president and chief executive officer Marc Nussbaum said, “We have made significant investments in time, engineering expertise and customer relationships to develop our products and business. One of the principal reasons we bought Lightwave was to gain exclusive access to its technology. We are committed to protecting the integrity of these investments by pursuing any attempts to infringe upon our proprietary technologies and rights.”
Lantronix purchased Lightwave in June 2001 for more than $14 million in cash and more than 3.4 million shares of stock. In addition to enjoining LSI from continued misuse of Lantronix intellectual property, the lawsuit, filed in Superior Court in Connecticut, also seeks actual and punitive damages.
About Lantronix, Inc.
Lantronix, Inc. (NASDAQ: LTRX) is a provider of hardware and software solutions ranging from systems that allow users to remotely manage network infrastructure equipment to technologies that network-enable devices and appliances. Lantronix was established in 1989, and its worldwide headquarters are in Irvine, Calif. For more information, visit the company on the Internet at www.lantronix.com.
Lantronix is a registered trademarks of Lantronix, Inc. Lightwave Communications is a trademark of Lantronix.
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