Legal News

Ashbury Heights Capital LLC Sues Revere Data for Misuse of Intellectual Property
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

McGill and Mingardi

Summary: The investment company developed a system to better predict stock prices that they licensed to data company Revere. The resulting revenue is under question.

A small investment company started by Eric McGill and Paul Mingardi, two Massachusetts Institute of Technology graduates, called Ashbury Heights Capital LLC, filed a lawsuit accusing a former partner, Revere Data, of mishandling data. The investment company conducts analysis and runs a small hedge fund.

  
What
Where


Ashbury Heights claims that their old data partner misused intellectual property and under-reported revenue. Ashbury designed a methodology to predict the movement of stock prices based on economic information and extrapolations between customer-supplier relationships. The system allows investors to predict the impact that unrelated events have on publicly traded companies that use supply-chain analysis. The system uses tools similarly to how Google ranks pages along with graph theory.

The two companies partnered up in 2010 where Revere licensed the system developed by Ashbury and offered it to a number of hedge funds. Revere marketed the product as a “Relationship Analytics Engine”. They saw a boost in sales and clients, including WorldQuant, Two Sigma, Renaissance Technologies LLC, BlueCrest Capital Management LLP and the Director of National Intelligence.

Ashbury claims that Revere failed to report all of their revenue from the licensing and misused their intellectual property. The data company has since been sold to FactSet Research Systems Inc in 2013 for $15 million. FactSet is a publicly traded analytics company.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Before, it was unclear how exactly private firms on Wall Street used analytical and data techniques in the trade of stock. This dispute has provided a glimpse into how some hedge funds like Two Sigma Investments LLC and WorldQuant LLC predict stock prices.

The case will not be moving into confidential arbitration, as defendant’s motion was denied. Instead, the case will go to trial September of next year.



Source: http://www.wsj.com/articles/legal-suit-shedding-light-on-secret-trading-technology-1434965402

Photo: ashburyheightscapital.com



 

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Senior Antitrust Associate Attorney

USA-CA-San Diego

San Diego office of our client seeks Senior Antitrust Associate Attorney with 7 years of experience....

Apply Now

Senior Antitrust Attorney

USA-WA-Seattle

Seattle office of a BCG Attorney Search Top Ranked Law Firm seeks Senior Antitrust Attorney with 9 y...

Apply Now

Patent Attorney

USA-DC-Washington

Washington, D.C. office of a BCG Attorney Search Top Ranked Law Firm seeks Patent Attorney with 1 ye...

Apply Now

RELEVANT JOBS

Litigation Attorney

USA-IL-Chicago

AV-rated, Chicago Loop defense firm of trial lawyers seeks associate attorneys to join our busy liti...

Apply now

Litigation Attorney (5+ years)

USA-FL-Fort Lauderdale

The Fort Lauderdale office of Kaufman Dolowich & Voluck seeks an experienced litigation associate wi...

Apply now

Director of Originations, Litigation Finance Investments

USA-TX-Dallas

Location is flexible nationwide -- NOT only Dallas. Job Summary Rapidly growing litigatio...

Apply now

Market Research Consulting Analyst for Litigation Projects

USA-MA-Waltham

Applied Marketing Science, Inc. (AMS) is a market research and consulting firm located in Waltham, M...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top