Haynes and Boone, attorneys have secured a US$12.5 million jury verdict on behalf of Dallas-based Data Center Systems in a case alleging fraud related to a three-year agreement with Computer Network Technology Corporation concerning data centre connectivity products. CNT is now known as McData Services Corporation, a wholly-owned subsidiary of Brocade Communication Systems.
In the 2003 agreement, DCS acquired the rights to two fibre optic product lines. CNT agreed to promote, market and sell both product lines and not to compete with DCS during the entire three-year term of the agreement. Filed in March 2006, the Data Center Systems lawsuit charged that CNT never intended to perform its obligations under the agreement. After eight days of trial in United States District Court in Dallas, the jury concurred, finding by clear and convincing evidence that CNT had committed fraud and that DCS suffered lost profits of US$12.5 million.
Source: PR Web