Reed Construction Data Sues McGraw-Hill Construction Dodge For Trade Secret Theft

BusinessWeek is reporting that Reed Construction Data, a construction information provider, has amended a federal lawsuit against McGraw-Hill Construction Dodge, raising new claims of unlawful misappropriation of trade secrets.

The original lawsuit, filed Oct. 8 in the U.S. District Court for the Southern District of New York, charged that Dodge used a series of fake companies since 2002 to pose as RCD customers and gain access to RCD's construction project information database.

Reed Construction Data is a subsidiary of Reed Elsevier. McGraw-Hill Construction Dodge is a unit of The McGraw-Hill Companies Inc.

The amended complaint alleges that Dodge downloaded hundreds of RCD project-related documents and viewed details for thousands of construction projects.

The lawsuit alleges Dodge made misleading claims that its products were superior to RCD's, preventing companies from making fair and objective comparisons of the companies' products.

Hundreds of companies made misinformed buying decisions, the lawsuit said.

The amended complaint alleges multiple counts of fraud, misappropriation of trade secrets, misappropriation of confidential information and unfair competition, among other allegations.

Spokeswoman Patricia Walsh for McGraw-Hill Construction Dodge said the company denies the allegations. "We believe their legal claims are without merit and we intend to defend against them vigorously," she said.

The suit seeks an unspecified amount in lost profits, punitive damages and a jury trial.