Published: July 03, 2008
En Pointe Sues Softchoice for Illegal Acts
LOS ANGELES, July 3 /PRNewswire-FirstCall/ -- En Pointe Technologies,
Inc., (Nasdaq: ENPT), announced today that it had filed suit against
Softchoice Corporation, seeking a court declaration that Softchoice has
engaged in improper business practices by using anti-competitive clauses in
its employment contracts and policies which unlawfully restrict an
individual's ability to work.
In the court filing En Pointe alleges that Softchoice's employment
contracts contain illegal and void clauses that prevent former Softchoice
employees from marketing, offering, or providing products similar to those
marketed, offered, or provided by Softchoice or to any Softchoice customer and
that Softchoice's use of such clauses in its employment contracts is illegal
and void.
"We believe that Softchoice's overreach manifests itself through an
attempt to impose illegal and void terms on employees that restrict the rights
of workers through anti-competitive business practices," noted Bob Din, CEO of
En Pointe.
As aMinnesota court found in ruling against Softchoice on a trade-secret
claim on April 15, 2008:
"... While [the employees] may know customers' contact information, the
company's hardware system, etc. and they have skills and experience that
was acquired while working for Softchoice, "[H]ow could [they] not?"
. . . .. But many salespersons in the industry have acquired such skills
and experience. Further, the customer information [the employees] have
is available to anyone in the industry. Every company with computers is a
potential reseller customer; the more computers, the better the prospect.
Resources abound for salesperson to find contact information and details
about those companies. None of the information obtained through these
methods is Softchoice's confidential information, and it is not legitimate
for Softchoice to seek to prevent [the employees] from utilizing these
methods or the information obtained through these methods. Id. (a
"salesperson should be able to ply his trade"); . . . .("knowledge of
industry contact people does not rise to the level of a trade secret
because this type of unprotected information is readily attainable with
a trade"). That Softchoice "maintains" it after its representatives
collect it does not convert the information into Softchoice's confidential
information. . . . . ("the mere fact that a 'confidential' label is
attached to information is not itself sufficient to elevate ordinary sales
information to secretive stature") .
It is insufficient for Softchoice to argue that, while the individual
pieces of information may be publicly available, Softchoice has combined
the information and the combination is entitled to protection. . . .
("[simply to assert a trade secret resides in some combination of
otherwise known data is not sufficient"); . . . . ("customer lists, even
with specific information about those customers attached to them, are
generally not considered to rise to the level of a trade secret under
Minnesota law"). Nor is it sufficient for Softchoice to argue that the way
it generated and combined the publicly available information is entitled
to protection, because it does so just like everyone else in the industry
. .. . "
"We are confident in the value of the totality of the En Pointe offering
to potential employees and to our customers. En Pointe's broad offering of
software, hardware and services enables its employees to serve customers
across the full spectrum of the customers' needs. We believe that Softchoice
wrongfully threatens suit against employees who dare to leave them," said
Michael Rapp, Vice-President of En Pointe. "Our goal is to put a stop to this
illegal behavior and force Softchoice to acknowledge the rights and freedoms
of their present and former employees."
About En Pointe Technologies, Inc.
En Pointe Technologies, Inc. provides the information technology
marketplace, including midmarket and enterprise accounts, government agencies,
and educational institutions nationwide, with computer hardware, software,
information security, and managed and professional services. En Pointe has the
flexibility to customize information technology services to fulfill the unique
needs of each of its customers. En Pointe employs SAP, Clarify(TM), and
AccessPointe(TM) (an e-procurement application), proven and dependable
software applications, to support its broad customer base.
Founded in 1993 and headquartered inLos Angeles County, En Pointe
maintains an ISO 9001:2000 certified configuration center inSan Bernardino
County, California and is well represented in leading national markets
throughoutthe United States. En Pointe has the experience and the technology
to help organizations simplify the management of their information technology
infrastructure.
Visit http://www.enpointe.com to learn more.
This document contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. In addition, from time to time,
En Pointe Technologies, or its representatives, have made or may make
forward-looking statements, orally or in writing. The words "estimate,"
"project," "potential," "intended," "expect," "anticipate," "believe" and
similar expressions or words are intended to identify forward looking
statements. Such forward-looking statements may be included in, but are not
limited to, various filings made by En Pointe with the Securities and Exchange
Commission, press releases or oral statements made with the approval of an
authorized executive officer of the Company. Actual results could differ
materially from those projected or suggested in any forward-looking statements
as a result of a wide variety of factors and conditions. Reference is hereby
made to En Pointe's Annual Report on Form 10-K for the fiscal year ended
September 30, 2007 for information regarding those factors and conditions.
Among the important factors that could cause actual results to differ
materially from management's projections, estimates and expectations include,
but are not limited to: changing economic influences in the industry;
dependence on key personnel; actions of manufacturers and suppliers; and
availability of adequate financing. Readers are cautioned not to place undue
reliance upon these forward-looking statements that speak only as of the date
of this press release. En Pointe undertakes no obligation to update publicly
any forward-looking statements to reflect new information, events or
circumstances after the date of this press release or to reflect the
occurrence of unanticipated events.
All trademarks and service marks are the property of their respective
owners.
For additional information regarding investor matters, please contact:
Javed Latif
Chief Financial Officer and
Sr. Vice President, Operations
En Pointe Technologies, Inc.
Phone: (310) 337-5212
Fax: (310) 258-2324
ir@enpointe.com
For additional information regarding sales or customer matters, please
e-mail us at:
sales@enpointe.com or contact us by phone at (800) 800-4214.
To receive investor e-mail alerts, please sign up at:
http://www.enpointe.com/investor_alerts.htm.
SOURCE En Pointe Technologies, Inc.
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