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Function One Consulting Group L.L.C. v. Accudata Systems Inc., et al.
April 20, 2015

This case was a $11.4 million jury win in a business disparagement lawsuit for a Houston technology company.

Function One hired AZA midway through the litigation to defend against a motion for sanctions based on videotape evidence of eavesdropping and spying by a Function One private investigator at archrival Accudata’s offices. After defeating this motion, AZA took over the case from Function One’s previous counsel. AZA defeated four counterclaims by Function One’s archrival, Accudata, obtaining dismissal of two on a directed verdict.

Although Function One initially sought only nominal damages, AZA developed a claim that Function One had lost a multimillion-dollar contract with its largest customer—BG Group, Ltd.—because of false allegations by Accudata that Function One had violated U.S. tax laws. AZA presented Accudata emails and witness testimony from former BG Group executives and a former Chief Counsel of the IRS. And through cross-examination of Accudata’s president, AZA secured a unanimous jury finding of actual malice as well as $1 million in punitive damages.

AZA’s victory in this case is the largest business disparagement verdict in Texas for at least the last 10 years.  Two weeks after the verdict, Accudata paid a confidential settlement amount.

AZA lawyers: Steven Mitby, Tiffany Joudi, and Adam Milasincic

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