Devon IT's RICO suit against IBM execs lives on

Devon IT's David v. Goliath RICO suit against four IBM executives lives on. The King of Prussia-based vendor of thin client computing devices and systems filed suit last year against IBM and the current and former IBM executives, accusing them of a $12 million Ponzi scheme designed to bilk Devon IT.

U.S. District Judge Joel Slomsky ruled on Thursday in Philadelphia that the suit against the individuals would continue to have RICO status. The judge did disconnect IBM from the RICO allegations, although the corporation will still face fraud, breach of contract and negligent supervision claims.

Devon IT, founded by Devon Health Preferred Provider Organization founder Dr. John Bennett of Villanova, alleges that the IBM execs defrauded it of $12 million by diverting funds Devon IT had invested in two products with IBM for other purposes within the corporation without telling Devon IT that one of the projects had been cancelled.

The defendants argued that 8 of the 9 claims against them were invalid because of releases signed by Devon IT, but the judge found that Devon IT may have been fraudulently induced into signing them. Although Slomsky did dismiss three of Devon's claims, he upheld the others and the RICO status applying to them, saying that "plaintiffs have sufficiently alleged predicate acts of wire fraud or 'racketeering activity.'".

Devon also claims that the defendants had been under the supervision of Robert Moffatt, a former top IBM exec who was convicted last year on insider trading charges, although he is not named in this suit.

The defendants have until April 21 to file a response.

Devon IT seeks damages in excess of $100 million. Mitts Milavec, LLC of Philadelphia is representing Devon IT.

Here is a Devon IT 2009 presentation to IBM (pdf), still hosted on IBM's website.



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Daily Links 4/8/2011: Comcast Picks Microsoft To Stream 'TV Everywhere'

Comcast Picks Microsoft To Stream 'TV Everywhere'
MSO's ThePlatform Integrates Microsoft PlayReady, IIS Smooth Streaming Into Video Management System (Multichannel News)

Viacom: Cablevision Has 'Seized' Rights It Does Not Have With iPad App
Notice to MSO Comes After Time Warner Cable and Viacom Trade Lawsuits Over Similar Tablet Service (Multichannel News)

Moto Medios Goes Social (Light Reading Cable)

Competition creator? FCC forces "data roaming" on reluctant carriers (Ars Technica)

House passes measure to repeal net neutrality (The Hill)

Farzad Mostashari named new head of ONC (Modern Healthcare)

Dell to spend $1B on cloud services this year
And IBM will support SAP in the cloud (Computerworld)

Oracle to Acquire Datanomic
Data quality provider adds risk and compliance features to Oracle's data management system
(Information Management)

Innovator: Jennifer Pahlka
The founder of Code for America is bringing programmers and cash-strapped cities together to give government services a boost (Business Week)



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Daily Links 4/7/2011: Dell, IBM announce Cloud Computing plans

Dell Plans to Spend A Billion Dollars to Build 10 New Data Centers (All Things Digital: NewEnterprise)
Implications for Boomi?

Dell Cloud Computing Spending Spree Nears $2 Billion (CRN)

IBM Seeks to Make Cloud Computing More Palatable to Businesses (Bloomberg)

Safeguard Scientifics Leads $45 Million Financing for PixelOptics
Disruptive Technology Revolutionizes Standard of Care for Eyeglass Wearers (Business Wire)

Federal Judge OKs Rico Suit Against IBM Execs (The Legal Intelligencer)
Suit filed last year by King of Prusia-based thin client vendor Devon IT.


Bentley Launches New Lineup of Bentley Map 3D Desktop GIS Software for Infrastructure (Business Wire)

SunGard Acquires Toronto based Stratix Consulting (TechFinance.ca)

Cisco: What Should They Sell? (Forbes: The Tech Trade)
Many analysts recommending that Cisco sell its set top box business. Who would the potential buyers be?

ESPN Pipes Live TV to Apple Devices (Light Reading Cable)

Time Warner Cable Seeks Court Ruling To Approve iPad App For Viacom Nets
Viacom Responds With Countersuit Charging MSO Is Violating Terms of Distribution Agreement
(Multichannel News)
We Filed A Request For Declaratory Judgment With Viacom This Afternoon (Time Warner Cable Untangled)

Motorola Mobility Blends Community and Entertainment With Launch of SocialTV Companion Service for Tablets and Mobile Devices (PR Newswire)

In Surprise Appeal, TJX and Heartland Hacker Claims U.S. Authorized His Crimes (Wired)



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Daily Links 4/6/2011: ShopRunner Wants to Give Amazon’s Free Shipping Program a Run for Its Money

ShopRunner Wants to Give Amazon’s Free Shipping Program a Run for Its Money (All Things Digital: eMoney)

ShopRunner Launches Enhanced Marketplace Where Millions of Products Are Eligible for Free, Two-Day Shipping (Business Wire)

Dish Network Wins Auction for Blockbuster With $320 Million Bid (Hollywood Reporter)

Dish's Latest Buy Is a Blockbuster (Light Reading Cable)

Comcast to FCC: Keep Hulu info secret (Politico)

Cisco: De-Emphasis, Not Divestiture, Of Consumer, Says Barclays (Barron's: Tech Trader Daily)
Competes with Motorola Mobility in providing technology to the Cable industry.


Analyst: Motorola Xoom and Atrix are duds (VentureBeat)

Dell Boomi Exec Says Architects, SIs Exploring New Cloud Integration Options (Integration Developer News)

Do SAP customers really need in-memory Strategic Workforce Planning? (SearchSAP.com)

Others Drawn Into Oracle, Rimini Street Legal Fray (PC World)

Alteva Receives Unified Communications® Magazine's 2010 Product of the Year Award (Marketwire)

Commodore Announces New Commodore64, VIC Computers (PC Magazine)
A rebirth of sorts for Commodore, the PC pioneer that was based in West Chester, although the current entity has no relationship to the old one or local connection.

Pennridge district readying government-education channel for Comcast (Philadelphia Inquirer)



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Daily Links 4/5/2011: Software AG seeks acquisitions, improved ties with SAP

PhillyDeals: Michael G. Rubin is dealing again, this time with eBay (Philly.com: Philly Deals)

Alteryx Secures $6M Series A Funding From SAP Ventures (PR Newswire)

Software seeks acquisitions, improved ties with SAP (Reuters)

Lawson Talks Product As ERP Consolidation Looms (Information Week)

Epicor, Activant ... last one out, please turn off the lights (The ERP Graveyard Blog)
As I posted yesterday, Activant has a major Delaware Valley presence.

Can a humble Chart object get some love? (… and points beyond)
Questions QlikTech's position in graphical display. Maybe there is a little acquisition they can make that would help with that.

Scvngr pilot LevelUp targets entrepreneurs with special local deal (VentureBeat)
Starting in Boston and Philly.

As Hulu Revenue Doubles, It Sparks a Set Top Box Boom (Gigaom: NewTeeVee)

NBCU Targets Hispanics With Marketing Initiative
Custom Ad Packages Include Broadcast, Cable, Online (Multichannel News)

Comcast Keeps Eye on the iPad Prize (Light Reading Cable)

Cephalon Rejects Valeant’s $5.7 Billion Takeover Bid (New York Times: DealBook)

Practice Fusion raises $23M in 2nd round (San Jose Business Journal)

Transplace Acquires SCO Logistics, Leading Provider of Logistics Services to Chemical, Process Manufacturing Industry (Business Wire)
SCO Logistics is based in Kennett Square.



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Apax Partners to acquire Epicor and Activant Solutions; includes Activant's Yardley-based Prophet 21 business

Private equity firm Apax Partners has agreed to acquire Epicor and Activant Solutions for a total value of about $2 billion, and plans to merge the two companies. The move will create a larger player in the ERP (Enterprise Resource Planning) market.


Although no specific price was given for the Activant purchase, the price for Epicor is $12.50 per share, or about $1 billion, so presumably the Activant price was also in the $1 billion range. California-based Activant acquired Yardley-based Prophet 21 in 2005 for $215 million, and Prophet 21 is still a major component of its business. Prophet 21 provides ERP software for distributors, and was founded by John and Dorothy Meggitt in 1967.

Epicor’s revenue for FY 2010 were $440 million, while Activant reported revenue of $378 million in 2009

Google's Invite Media Founders: Why We Decided Not to Start the Next Facebook
Nat Turner and Zach Weinberg on Exchanges, Display Ads and Mobile, and Video-Buying Trends (Ad Age)

Angel investors growing in Phila. (Philly.com: Philly Inc)

Comcast Begins Search For Minority Networks
Hispanic-, African-American Owned-Or-Operated Channels To Launch First (Multichannel News)

Media Giants: The Difference Between Digital Survival And Smarts (Silicon Alley Insider)


Court dismisses Verizon lawsuit against FCC net neutrality rules (Washington Post: Post Tech)

SAP’s OnDemand Design Strategy (JD-OD.com)
Video: Interview with John Wookey, who heads SAP’s on-demand strategy.

CIGNA Announces New Chief Information Officer (Hartford Courant)

The Wharton School of Entrepreneurship (Wharton Journal)

Cablevision Launches iPad App With 280+ Channels (Light Reading Cable)

Email Breach At Email Marketer Epsilon Affects TiVo, Citi, Marriott And More (TechCrunch)

Philly Tech People News 4/3/2011

Harold Finders Named Chief Executive Officer of SunGard Financial Systems (PR Newswire)

Rosetta Promotes Three to Partner (PR Newswire)

Gannett Names New Chief to Front Digital Push (ClickZ)

Neumann Joins MTI as Senior VP, Client Management (Business Wire)

Energy Plus Appoints Top Industry Veteran as Chief Information Officer (PR Newswire)

ID Media Taps Diana Bald As New SVP, Marketing Director (PR Newswire)

MEI Appoints Stephen Arbour as Vice President of Technical Services
(PRLog)

SunGard Higher Education sues hosting provider Cajana

In a case that, at least on the surface, has some vague similarities to Oracle's lawsuit against SAP over its now shuttered TomorrowNow unit, Malvern-based SunGard Higher Education filed suit in February against Cajana, an Atlanta-based provider of application management and hosting services.

The complaint, filed in the US District Court's Southern Division of Ohio, charges Cajana with copyright infringement and misappropriation of trade secrets. It refers specifically to application management and hosting services provided by Cajana to Northwest State Community College in Archbold, Ohio beginning late last year. By providing these services, SunGard contends, Cajana has access to SunGard's intellectual property and trade secrets without SunGard's explicit permission as required by contract. SunGard also says that Cajana has been soliciting several other Ohio schools to provide similar services. Sungard seeks an injunction and potentially compensation for damages.


In a response filed with the court in March, Cajana says SunGard HE has "unclean hands" because it "brought this action solely for the improper purpose of gaining an unfair and unlawful competitive advantage in the marketplace and with the goal of interfering with Cajana’s business relations and prospective business relations with its customers".

Cajana's existing Higher Education business appears to be more closely aligned towards supporting Oracle's PeopleSoft product line geared towards that segment.

SunGard Higher Education is a unit of Wayne-based SunGard Data Systems.

The case is No. 2:11-CV-00148-JLG-TPK. Documents can be viewed through PACER (registration required and fees may apply).

Comcast Chief's Compensation Increases 14% as NBC Takeover Is Completed (Bloomberg)
But Steve Burke earns more.

Intuit, Salesforce.com Team Up to Target Small Businesses (Wall Street Journal: Digits)


SAP's on-demand strategy signposts new directions (ZDNet Blogs)

Device-to-Device Media Sharing that Works
One proximity-based app has nailed the triangulation problem. (MIT Technology Review)
On NearVerse's LoKast.

Dot Obits: The Man Who [Really] Invented the Internet (Read Write Web)
Born in Poland, Paul Baran was raised in Philly, got an engineering degree from Drexel, and worked on the UNIVAC.

Q&A: Former Comcast CTO David Fellows
(Light Reading Cable)

Fight over Time Warner Cable's iPad service comes down to philosophical differences (LA Times: Company Town)

UniTek Global Services Expands Specialty Wireless Capabilities With Acquisition of Pinnacle Wireless, Inc. (Globe Newswire)