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MACOLA RESELLERS SUE ECI Featured

Michael Oswalt, AlgorithmThirteen Macola resellers who were terminated from their VAR Contracts have filed sued against ECI Macola/Max LLC, the company which owns the software package. The group this week alleged antitrust violations, tortious interference, breach of contract, along with other claims. ECI has not responded to a request for comment.

More immediately, the group wants a temporary restraining order to prevent ECi from allegedly telling Macola customers that they are prohibited from doing future business with the resellers and from requiring customers to purchase unwanted services as a condition of receiving software updates “It’s a daunting task for a handful of small businesses to take on ECi’s millions, but we made a promise to help our customers grow their businesses and we’ve become an integral partner with those companies,” said Michael Oswalt, CEO of Algorithm of Dublin, Ohio, one of the plaintiffs. The suit says ECI notified them on October 1 the company was discontinuing its partner channel. The resellers were also notified customers would no longer be allowed to work with the resellers on ECi products.

The complaint alleges ECi is forcing Macola users to purchase services they do not want in exchange for continuing to receive routine software updates. The company is also accused of  ”fraudulently telling Macola users that they will breach their software license agreement with ECi if they continue to do business with their reseller.” ECi is also accused pressuring Macola users to sign new agreements that contain that would prohibit Macola users from hiring anyone other than ECi to perform support or consulting on Macola software.  The VARs also claim ECi cut off commissions already earned and other benefits. The VARs hired the law firm Organ Cole LLP and filed suit in U.S. District Court for the Southern District of Ohio. The suit alleges that ECi’s conduct constitutes breach of contract, tortious interference, unfair competition, and violates state and federal antitrust law. The plaintiffs are Algorithm, Attivo Group, Business Computer Technologies, Copius Solutions, DataSpring, the Donas Group, Exceptional Software Solutions, Fannin Consulting, iPro, Mayer Schanzer & Mayer, Red Deer Ventures, Software Solutions and Triangle Partners.

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