Texas Company Sues Apple Over Alleged Theft of Technology Behind Apple Pay
Apple (AAPL.O) faces a lawsuit from Texas-based firm Fintiv, accusing the tech giant of stealing trade secrets and technology developed by CorFire, a company Fintiv acquired in 2014, to create Apple Pay. The complaint, filed in Atlanta federal court, alleges that Apple held multiple meetings and nondisclosure agreements with CorFire in 2011 and 2012 intending to license its mobile wallet technology but instead used the information and persuaded CorFire employees to join Apple.
Fintiv claims Apple used this technology to launch Apple Pay in 2014 and profited by generating fees for major credit card issuers and payment networks without compensating Fintiv. The lawsuit accuses Apple of corporate theft and racketeering under federal and Georgia trade secrets and RICO laws, seeking both compensatory and punitive damages.
Apple has not commented on the lawsuit. A related patent infringement case by Fintiv against Apple was dismissed earlier this month in Austin, Texas, with Fintiv planning to appeal.