Applied Systems sues Comulate
Applied Systems filed a lawsuit in the U.S. District Court for the Northern District of Illinois against Ardent Labs, Inc., d/b/a Comulate and PBC Consulting Inc. (“PBC”) for fraudulently and unlawfully accessing Applied’s technologies to reverse engineer and misappropriate Applied’s valuable trade secrets in order to accelerate their product development.
According to Applied, Routine review of Applied’s software development kit (SDK) usage detected unusual activity by a small agency that triggered internal escalation protocols. The investigation revealed that Comulate created a fake insurance agency to perpetrate its fraudulent activity.
Founded in 2022, Comulate is a San Francisco-based startup building an accounting automation and revenue-intelligence platform for insurance brokers. The company has raised a $20 million Series B this year.
Applied is seeking injunctive relief, as well as monetary damages and other remedies as provided by law.
The story has been updated as of Monday, Nov. 24. Comulate responded to the lawsuit with a press release, calling Applied’s claims “demonstrably false and part of a calculated scheme to eliminate a competitor,” and noting that it intends to countersue “to restore free market competition, ensure brokers retain unimpeded ability to use their own data, and hold Applied accountable for anticompetitive conduct that harms the entire industry.”
Comulate also notes: “After unsuccessful attempts to acquire Comulate or develop a competitive product, Applied orchestrated a coordinated, multi-front attack: file suit with fabricated claims, immediately weaponize the lawsuit to threaten mutual customers to try to compel contract cancellations, and carefully time the operation to block deployments of Comulate among flagship customers. The goal isn’t legal victory – it’s market elimination before customers can assess the actual facts and learn the truth.”
