Maryland Business and Estate Law Firm

FOR IMMEDIATE RELEASE

Contact: Ray Weiss or Jessica Trzyna

443-451-7144 or rweiss@weissprassociates.com

BENELOGIC LOSES $3 MILLION LAWSUIT

AGAINST FORMER CHIEF STRATEGIC OFFICER

BALTIMORE, MD (9/22/11) — Lutherville, MD-based Benelogic, a provider of online benefits enrollment solutions, has lost a $3 million lawsuit the company had filed against its former Chief Strategic Officer (CSO) and start-up company. All counts of this lawsuit, which alleged that this executive breached his fiduciary duty to Benelogic, were decided in favor of the defendants by Baltimore County Circuit Court Judge H. Patrick Stringer, Jr.

Judge Stringer noted, “The Court … finds no persuasive evidence … that the damages claimed by Benelogic resulted from any of the alleged breaches of duty by the defendant.”

Benelogic had contended that the defendant covertly created a competing company, recruited Benelogic employees to work for it and solicited current and prospective Benelogic customers for his new company, and misappropriated Benelogic’s trade secrets. None of these contentions were proven.

In his opinion, however, Judge Stringer ruled specifically that the former CSO did not breach his employment agreement and did not usurp any of Benelogic’s corporate opportunities, customers, employees, or trade secrets. Further, the Court’s opinion affirmed that the defendant and his team had provided value to Benelogic commensurate with their work, and that the acts of preparation for a new company were permissible under Maryland law. “The plaintiff has not proved any loss due to the formation…,” stated Judge Stringer’s opinion.

“This lawsuit and the harsh accusations made by Benelogic in court pleadings, correspondence, and to third parties - many of them personal in nature - have done irreparable harm to my client’s reputation, and this lawsuit was costly to defend,” said attorney James A. List, who handled the defense for the defendants.

List added that in November 2010, Benelogic CEO Matthew T. Oros testified that Benelogic was forced to lay off nine employees because of financial difficulties while continuing to fund this litigation. That litigation began in 2009 when Benelogic attempted to get a temporary restraining order issued against the defendants on two occasions, both of which were unsuccessful.

After amending its complaint against the defendants four times and conducting extensive discovery, including numerous depositions, throughout 2009, the case finally went to trial in May 2010 and continued through January 2011, punctuated by several postponements and extensions. Benelogic put on testimony, including expert testimony, for approximately 25 trial days, while the defense called witnesses in response for only five trial days.

The Law Offices of James A. List, LLC is a mid-Atlantic law firm serving business owners; families with developmentally disabled members; and individuals with real estate, estate planning, asset protection and trust needs. The cornerstone of the firm is its personal, responsive customer service.

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