Mortgage Daily Logo

DocMagic Expands Lawsuit Against Ellie

Mortgage News

After reviewing Ellie Mae’s registration statement, DocMagic Inc. has expanded its lawsuit against the mortgage technology provider. DocMagic claims the public filing shows how Ellie has profited by stealing DocMagic’s intellectual property.

An amended complaint was filed in U.S. District Court for the Northern District of California on Monday by Carson, Calif.-based DocMagic, according to a copy of the filing provided by DocMagic — which claims to be “the largest loan document production company in the U.S.”

In its original complaint filed in August 2009, DocMagic claims Ellie terminated it from the ePASS Network and “took drastic steps to prevent hundreds of current DocMagic/Encompass users from accessing DocMagic products through unfair and anticompetitive behaviors, including sabotaging its clients by preventing access to DocMagic through alternative (non-ePASS) Web service calls.”

DocMagic said its amended complaint significantly expands the allegations and claims initially made against the Pleasanton, Calif.-based technology service provider. Additional claims under the Lanham Act included unfair competition, false advertising and copyright infringement. Other claims were added for trade secret misappropriation, a request for a declaratory judgment that DocMagic didn’t infringe upon Ellie’s copyrights and that Ellie has no claim to the ownership of its client’s loan data.

Ellie, through a spokeswoman, said it cannot comment because it is in a quiet period leading up to its initial public offering, which was disclosed in a FORM S-1 filing with the Securities and Exchange Commission on April 30.

But DocMagic President and Founder Dominic Iannitti was in no quiet period.

“Now that we have had the opportunity to review Ellie Mae’s financial performance in its IPO Prospectus filed with the Securities Exchange Commission, it appears that the only financial success Ellie Mae can claim in the last two years is tied directly to the document preparation business, much of which is based on business and intellectual property stolen from DocMagic and others in violation of federal and state laws,” Iannitti said in the statement. “The more we discover about their conduct, the more compelled we are to make sure that the full scope and breadth of it is brought under scrutiny.”

DocMagic Inc., a California corporation, Plaintiff, v. Ellie Mae Inc., a Delaware corporation, Defendant.
Case No. CV 09 4017, Aug. 28, 2009 (U.S. District Court for the Northern District of California).

Related Posts

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

There is No Such Thing as a Free House …

Over the past several years, those who service loans in the State of Washington(1) have seen a dramatic rise in the number of lawsuits in which delinquent borrowers seek to quiet title to their homes on the grounds that lenders are barred from foreclosing based on...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

The Mortgage Graveyard 2018 Archives

The Mortgage Graveyard 2018 Archives Failed, Struggling and Acquired Mortgage-Related Companies Non-Bank Closures 3 Bank Failures (FDIC) 0 Credit Union Failures 0 Total Mortgage-Related Failures 3  

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

MBS Statistics

MBS Statistics Non-Agency Issuance 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 Private Label RMBS Issuance (S&P) $80 billion to $100 billion (est) $70 billion $34...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Sample E-Mail

Sample E-Mail   Covering the Real Estate Finance Since 1999  Mortgage Industry News free news content | view headlines online  Advertorial Text Ad This ad includes a linked bold headline of up to 50 characters and up to 100 words of text. The ad can be...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI