Lawsuit brought by TIBCO Software against GAIN Capital comes to an end

The civil lawsuit brought by TIBCO Software against online trading major GAIN Capital LLC was terminated on December 4, 2018.

Judge Edward J. Davila of the California Northern District Court signed an Order for Dismissal with Prejudice, thus granting the parties’ joint stipulation.

In their last filing with the Court, TIBCO and GAIN stated that this action, all claims that TIBCO asserted against GAIN in this action, and all counterclaims that GAIN asserted against TIBCO in this action shall be dismissed with prejudice. Each party shall bear its own costs and fees.

Let’s recall that, as per documents submitted by TIBCO in November, the plaintiff (TIBCO) and the defendant (GAIN Capital) had reached a conditional settlement.

In this lawsuit, TIBCO alleged that it licensed certain software to GAIN during a limited term, but that GAIN deployed the TIBCO software outside that term in violation of its license agreements with TIBCO. TIBCO sued GAIN for breach of contract, breach of the covenant of good faith and fair dealing, and copyright infringement. TIBCO’s allegations of over-deployment and unauthorized use of the software by GAIN were based in large part on an audit conducted in 2016 at TIBCO’s request by KPMG.

GAIN denied TIBCO’s allegations, and counterclaimed against TIBCO for fraud in the inducement, negligent misrepresentation, unfair competition, rescission based on unilateral mistake, and rescission based on mutual mistake. According to GAIN, KPMG did not perform the audit correctly, and TIBCO intentionally gave KPMG incorrect instructions on how to conduct the audit so that KPMG was certain to conclude that GAIN had exceeded the permissible scope of its licenses for TIBCO software.