Acquisition talks fall by way of all the time, but a new lawsuit from social media startup CultureSphere accuses worldwide IT enterprise HCL of a thing much more major — making use of those people talks as a way to get access to confidential information for use in a competing product or service.

HCL, in the meantime, has explained the CultureSphere’s allegations are “totally baseless.”

We wrote about CultureSphere just after its launch in 2015 — its cell application gives corporations a way to help and encourage workers to share written content on social media.

According to the lawsuit, the startup achieved with HCL’s BEYONDigital unit for the duration of the summer time of 2016 to talk about a probable acquisition. Inevitably, the conversations progressed significantly plenty of that CultureSphere was keen to share “the internal workings of CultureSphere’s proprietary platform,” which HCL executives agreed to take care of as “highly confidential.”

The lawsuit says this information “far exceeded any other disclosures that CultureSphere produced to any other enterprise that expressed interest in a probable acquisition,” and included technical and product or service aspects, as very well as marketing strategies.

The go well with goes on to claim that CultureSphere and BEYONDigital agreed on “key details” at the conference, like an acquisition cost of all over $twenty million and a closing day of September fifteen. Later on, even so, CultureSphere alleges that BEYONDigital executives stopped speaking, and only resumed to say that the offer was being delayed owing to broader corporate issues.

Then they reconsidered: “In a minute of candor, [HCL executive Anand] Birje explained [by means of electronic mail] that HCL was now discovering no matter whether it could develop the very same platform itself and any acquisition discussion would have to arise in mid to late Oct.” (The suit describes CultureSphere founder and CEO Danny Gordon as “justifiably outraged at HCL and BEYONDigital’s actions.”)

In September, in accordance to the lawsuit, HCL instructed CultureSphere it would not be heading by way of in the offer. Then in November, an HCL executive tweeted about what the CultureSphere workforce saw as a competing product or service that would “put HR in the driving seat to rework employee practical experience.”

The lawsuit alleges that HCL “could not make a platform or application as sophisticated and as advanced as CultureSphere from scratch in two months” and that the enterprise “induced CultureSphere to reveal its confidential and propriety supplies and information by way of bogus guarantees of confidentiality and non-use limits and the guarantee of acquisition that, with the profit of hindsight, HCL and BEYONDigital never ever meant to honor.”

CultureSphere is trying to get unspecified monetary damages and “injunctive relief” (presumably stopping HCL from releasing its product or service) in its go well with. In a statement furnished to TechCrunch, CultureSphere co-founder and CEO Danny Gordon explained:

Heading into 2017, there’s not a single company which does not will need our engineering. I know the field like the back of my hand and there’s not a single platform that is gotten the method appropriate apart from us. Our one obstacle is scaling speedy plenty of to capture the substantial market option. That was the premise for our agreed acquisition with BEYONDigital and HCL — to set our platform’s proprietary practical experience into as a lot of corporations as achievable, providing them unparalleled advantage in reach, info and growth by combining the employee practical experience and customer practical experience in one. As a platform giving under a World wide 2000 brand, we’d be ready to scale 10x more quickly than as a solo enterprise. HCL is the initially and only enterprise we shared the internal workings of our engineering with. We have not introduced it everywhere for the actual cause of being aware of it must be available under a worldwide company brand to scale promptly. [BEYONDigital World wide Head Jaco Van Eden] was practically nothing small of thrilled to combine and present our platform to HCL clientele and the over-all market.

As for HCL, a spokesperson sent us this statement: “It is inappropriate for us to remark on pending litigation, even so, we believe the allegations in the lawsuit to be totally baseless.”

You can go through the total grievance down below.