TransUnion stung with $18M verdict after source code hack

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TransUnion source code hack verdict overview: 

• Who: A jury in Cleveland has awarded Endless River Technologies an $18.3 million verdict over allegations it made against TransUnion. 
• Why: Endless River claimed TransUnion had wrongly refused to return the source code for an idea the companies were working on together after the latter chose to terminate their contract. 
• Where: The lawsuit was filed in Ohio federal court. 

A federal jury in Cleveland has ruled TransUnion must pay $18.3 million over claims it wrongly held the source code for a Northeast Ohio startup company hostage after ending a business agreement between the two of them. 

The startup company, Endless River Technologies LLC, had argued in Ohio federal court that they were unable to make money from their idea due to TransUnion’s alleged conduct, reports Law360. 

Following a weeklong trial, the jury agreed with Endless River, ruling that it sustained damages due to TransUnion’s alleged choice to withhold tools it needed to continue developing its idea. 

Endless River had been working on developing what it was calling the “Quote Exchange,” which the startup says was a tool which would allow consumers to compare car insurance quotes, reports Law360. 

TransUnion and Endless River reportedly partnered up together in 2014 to work on the Quote Exchange idea, with the startup alleging they drafted a contract stipulating that it should retain property rights should their union dissolve. 

TransUnion accused of demanding millions to return source code

Ultimately, TransUnion decided to terminate its contract with Endless River in 2017, the startup claimed, with the credit reporting giant allegedly demanding millions of dollars in return for handing over the source code for the idea, reports Law360. 

TransUnion was also accused of interfering with Endless River’s ability to work with other companies to try and develop its Quote Exchange idea.

Endless River filed its complaint against TransUnion in 2018, while the judge overseeing the case ruled in February that it had in fact breached its development agreement with the startup, reports Law360. 

In a separate case, TransUnion agreed to pay $9 million last month in order to resolve claims the company violated the Fair Credit Reporting Act by allegedly selling the information of consumers listed on the Office of Foreign Assets Control. 

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TransUnion was represented by Mark Premo-Hopkins, Britt Cramer, Cameron Ginder, Evelyn T. Cai, Danielle O’Neal, and Amarto Bhattacharyya of Kirkland & Ellis LLP.

The TransUnion source code hack lawsuit is Endless River Technologies LLC v. Trans Union LLC, Case No. 1:18-cv-00936, in the U.S. District Court for the Northern District of Ohio.

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