Tuesday, May 01, 2007, 5/01/2007 03:16:00 PM

Exel Transportation Services Inc. Announces $10 Million Settlement Agreement in Trade Secrets Matter with Total Transportation Services LP

By Todd
Business Wire is reporting that Exel Transportation Services Inc. announced that it recently received a cash payment of $10 million from Total Transportation Services LP based on a settlement agreement related to its lawsuit alleging unlawful access to trade secrets and other confidential and proprietary information.

As part of the settlement, Total Transportation Services agreed to the following public statement: “Unbeknownst to Total Transportation Services LP, wrongdoing was committed against Exel Transportation Services, and Total Transportation Services LP sincerely apologizes.”

Exel Transportation Services President Jim Damman stated, “We are pleased we were able to quickly detect this situation, and subsequently bring about the successful resolution of this litigation, which demonstrates the commitment of Exel Transportation Services to protecting its confidential and proprietary information.”

In a lawsuit filed April 3, 2006, in the U.S. District Court of the Northern District of Texas (Dallas Division), Exel Transportation Services alleged that the defendants used computer passwords to hack into Exel’s computer system. According to the lawsuit, certain Total Transportation executives, all of whom were former employees of Exel, systematically accessed Exel’s computer system and company e-mail accounts to obtain Exel’s trade secrets and other confidential and proprietary information in order to help establish Total Transportation.

Exel Transportation Services, with principal offices in Dallas and Memphis, Tenn., provides transportation and supply chain management products and services to facilitate links between shippers and carriers in the manufacturing, retail and consumer industries. Total Transportation Services provides similar products and services.
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