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SunRocket Files Lawsuit Against Vonage: Is Customer List Confidential?

SunRocket (or what is left of it) is suing Vonage over the acquisition and use of its customer list. The complaint alleges that SunRocket had discussions with Vonage regarding the purchase of certain SunRocket assets including its subscriber base and/or customer list. Prior to those discussions, which ultimately broke down, Vonage signed a confidentiality agreement. SunRocket claims Vonage violated the confidentiality agreement by obtaining and using its customer list without permission.

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Vonage, the number one VoIP provider in the US claims it obtained the list legally by purchasing the list from a third-party broker, Paradysz Matera. Charlie Sahner, a spokesman for Vonage stated “We obtained the subscriber list through an established broker, and we were assured the data was legally obtained and could be used without violating anyone’s proprietary rights. There is no connection to the [confidentiality] agreement.”

SunRocket said that its customer list is “one of its single most valuable remaining assets,” and that Vonage’s use of the list has caused “immediate and irreparable harm and injury” to the company. SunRocket has asked a judge to compel Vonage to return the list and award unspecified monetary damages.

One of the most valuable and marketable assets a company owns is its customer list. That’s true whether the company is profitable or has just closed its doors like SunRocket. Often proprietary information like a client list leaves a company with a disgruntled (ex)employee and turns up in the hands of a competitor. If you believe that you are the victim of such an unethical business practice, or you know a competitor is benefiting from confidential information from your company, contact Sylvester, Oppenheim & Linde today.

The value of your company is directly related to protecting its assets including but not limited to your client list……especially if you are selling or planning to sell your business.