Reuters is taking legal action against Moneyline Telerate, alleging that the latter has not paid the former for a disputed portion of certain invoices in connection with a Transitional Services Agreement (TSA) between the two companies following Moneyline’s acquisition of the Telerate business in 2001. The amount at issue differs between the two companies; MoneyLine states there is $18 million in disputed charges, while a Reuters spokesperson puts the figure at $20 million.
A spokesperson for Moneyline says that $18 million has already been placed into a segregated account but will not be moved into escrow until Reuters honours its side of the agreed conflict resolution and submits to an independent audit and an independent resolution process. The spokesperson for Reuters claims that because of the commercially sensitive nature of the information in dispute, an audit without clearly defined non-disclosure agreements would be unviable.
Reuters has declared its intention to terminate the agreement and all services it provides to Moneyline on December 19, and the spokesperson claims that it would have been within its legal rights to withdraw its services from Monday, September 22, but is giving 90 days notice to enable Moneyline customers to seek alternative sources of information. Because of the time sensitive nature of the case, Moneyline has requested the Federal Judge in New York to expedite the case.
Earlier this year, Jon Robson, former CEO of Moneyline, joined Reuters as global head of fixed income. Several months ago, Reuters filed a lawsuit against Bloomberg alleging breach of patent on a number of the latter’s trading applications.