Mulsanne vs Marshmallow, Latest Round

Here is some comment on the Mulsanne vs Marshmallow case from Mulsanne’s PR agency. There is also a summary of the story so far at Sky News here by the way. Earlier IE received a quote from Marshmallow, which is also posted below for some balance. For those with lots of time on their hands, a full judgement has been published here. Spoiler alert, it’s like wading through treacle.

MULSANNE COMMENT

To recap on the case:

  • Marshmallow was accused of taking Mulsanne’s intellectual property/trade secrets, (related to advanced algorithms enabling policies to be appropriately priced based on a customer’s risk profile) enabling it to establish its insurance company and build its business
  • Marshmallow was also accused of breaching contractual and fiduciary duties by transferring Mulsanne’s customers to their new insurance business
  • Marshmallow subsequently raised new equity funding, valuing the business at over US$1.25bn

The judgment

  • The judge found that Marshmallow had taken Mulsanne’s intellectual property and failed to provide customer details when requested by Mulsanne, breaching its duties under the pair’s agreed terms of business

What happens next?

Unless a settlement can be reached between the parties, Mulsanne intends to move forward with an assessment of the appropriate compensation due. It will seek a full investigation on the extent and impact of Marshmallow’s misuse of confidential information and breaches of contractual and fiduciary duties. Marshmallow’s testimony under oath revealed new and significant potential legal breaches that could lead to further action. A separate hearing on costs is also expected to take place.

A spokesperson for Mulsanne said:

“We welcome today’s judgment and will now move forward to establishing appropriate financial recompense for the damages we have suffered.”

“Marshmallow should not bear a judge’s finding of breach of confidence as a badge of honour: that finding indicates that they conducted their business with complete disregard for the importance of confidentiality, IP and appropriate systems and controls.”

MARSHAMALLOW COMMENT

“We are delighted that Mulsanne’s false allegations that Marshmallow had copied its underwriting model have failed in Court and their claims for £40m have been shown to be ridiculous. We always knew their claims were completely unrealistic and designed to damage our reputation following their attempts to gain a share of or buy Marshmallow.  It’s absolutely right that Mulsanne’s plans have failed.

“All the claims made against us by Mulsanne were either so weak they were dropped before trial, have been rejected by the Court completely, or have been shown, we believe, to be of little or no consequence. We were particularly pleased that the Judge recognised that we were conscientiously trying to avoid the use of any Mulsanne material. 

“We fully acknowledge the Judges’ decision regarding the very small number of “incidental, and almost accidental breaches” and are particularly pleased that the Judge recognised that we were conscientiously trying to avoid the use of Mulsanne material. ”

“We look forward to recovering our costs and continuing our focus on the business and its growth following the successful completion of the necessary consequential hearings.”

 

About alastair walker 10539 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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