IBM Settles zPrime Lawsuit
June 03, 2011
On May 29, 2011, Cravath client IBM entered into an agreement to settle a lawsuit brought by Neon Enterprise Software in the U.S. District Court for the Western District of Texas in December 2009. The suit concerned Neon’s software product, zPrime. Neon’s claims, seeking billions of dollars in alleged damages, included false advertising, business disparagement, tortious interference with prospective contracts and monopolization. IBM counterclaimed for breach of contract, tortious interference with contract and false advertising. In February 2011, the court issued a decision denying both parties’ motions for summary judgment, but upholding IBM’s interpretation of the relevant contracts. Certain fact questions were left for the jury. The case settled on the eve of trial, resulting in IBM’s winning a permanent injunction against Neon and the dismissal of all claims and counterclaims.
The Cravath team included partners Evan R. Chesler and Richard J. Stark and associates Jisun Park, Jefferson E. Bell, Joseph E. Lasher, Vicki McCall, Nava S. Sanders, Benjamin H. Diessel, Andrew D. Hale, Derek Mize, Derek Musa, Austin Van, Felicia Einhorn, Brian M. Jenks and Pawan Nelson. Corporate partner George F. Schoen assisted with settlement negotiations.
Related Practices & Industries
People
- Photo
-
-
J.D., 1998, University of Chicago Law Schoolwith Honors
-
B.A., 1994, Cornell University
- New York
Education
Admitted In
- Photo
-
-
J.D., 1975, New York University School of LawOrder of the Coif, John Norton Pomeroy Scholar, cum laude
-
M.A., 1973, Hunter Collegesumma cum laude
-
A.B., 1970, New York University
Education
- Photo
-
-
M.S., 2014, Columbia University
-
J.D., 1991, New York University School of Law
-
A.B., 1986, Harvard Universitycum laude
Education
Related News & Insights
Deals & Cases
April 07, 2025
IBM’s Acquisition of Hakkoda
On April 7, 2025, IBM announced it has acquired Hakkoda Inc., a leading global data and AI consultancy. Hakkoda will expand IBM Consulting's data transformation services portfolio, adding specialized data platform expertise to help clients get their data ready to fuel AI‑powered business operations. Cravath is representing IBM in connection with the transaction.
Deals & Cases
September 10, 2024
IBM’s Acquisition of Accelalpha
On September 9, 2024, IBM announced its intent to acquire Accelalpha, a global Oracle services provider with deep expertise helping clients digitize core business operations and accelerate adoption of Oracle Cloud Applications. This acquisition expands IBM's Oracle consulting expertise in supply chain and logistics, finance, enterprise performance management and customer transformation. Cravath is representing IBM in connection with the transaction.
Deals & Cases
February 20, 2024
IBM International Capital’s $5.5 Billion Registered Notes Offering
Cravath represented IBM International Capital Pte. Ltd (“IIC”) and International Business Machines Corporation (“IBM”) in connection with IIC’s $5.5 billion registered notes offering. IBM is a guarantor of the notes. IIC is a wholly owned finance subsidiary of IBM, a globally integrated innovation company, serving the needs of enterprises and institutions worldwide. The transaction closed on February 5, 2024.
Deals & Cases
January 25, 2024
IBM’s Acquisition of Application Modernization Capabilities from Advanced
On January 18, 2024, IBM announced it has signed a definitive agreement to acquire application modernization capabilities from Advanced, bringing a combination of talent, tools and knowledge to enhance IBM Consulting’s mainframe application and data modernization services. Cravath is representing IBM in connection with the transaction.
