Lemonade, the insurance coverage platform based mostly out of NYC, has filed a lawsuit towards German firm ONE Insurance coverage, its mum or dad firm wefox, and founder Julian Teicke.
The criticism, filed within the U.S. District Courtroom Southern District of NY, alleges that wefox reverse engineered Lemonade to create ONE, infringing Lemonade’s mental property, violating the Pc Fraud and Abuse Act, and breaching its contractual obligations to Lemonade to not “copy content material… to supply any service that’s aggressive…or to…create by-product works.”
Within the submitting (which you’ll see on Pacer or right here), Lemonade alleges that Teicke repeatedly registered for insurance coverage on Lemonade underneath numerous names and for numerous addresses, a few of which don’t exist. Teicke additionally allegedly filed claims in what seemed to be an try and assess and replica the association of these flows.
Lemonade’s counsel says Teicke began seven claims over the course of 20 days, prompting Lemonade to cancel his coverage.
Alongside Teicke, plenty of different executives and members of management at wefox additionally filed faux claims, says the criticism, regardless of having opted in to Lemonade’s consumer settlement and taking an honesty pledge, which is required of all Lemonade customers.
This, based on Lemonade, violates the Pc Fraud and Abuse act. Lemonade additionally alleges that the ONE app infringes Lemonade’s IP, and that in assessing the Lemonade app and constructing a competitor, Teicke additionally violated Lemonade’s TOS.
Lemonade has modified the insurance coverage enterprise in two key methods: First, it made the method of truly shopping for insurance coverage as straightforward as a number of clicks in your smartphone. Digitizing the method makes the difficulty of getting dwelling or renters insurance coverage far much less daunting and extra approachable to shoppers. Secondly, Lemonade rethought the enterprise mannequin of insurance coverage.
Usually, insurance coverage suppliers cost you a sure month-to-month price based mostly on the worth of the property/objects trying to be insured. However on the finish of the 12 months, the cash remaining in that coverage turns into revenue, placing the insurance coverage firm in direct opposition to the buyer any time a declare is filed.
Lemonade takes its revenue immediately out of every cost, and if a file isn’t claimed, it sends the remainder of the leftover cash to the charity of your selection, guaranteeing that Lemonade and the buyer are on the identical web page when a declare is filed.
In step with that thesis, any proceeds generated from this lawsuit will go on to Code.org.
“We’re not making an attempt to complement ourselves by poking one other startup,” mentioned Lemonade CEO Daniel Schreiber . “We’re not anti-competition. We’re simply saying ‘Play by the foundations, play truthful and sq..’”
Replace: A wefox spokesperson supplied up the next assertion:
At wefox Group, we’ve 160 gifted individuals whose onerous work has created a novel enterprise that’s difficult the established order day by day. These allegations haven’t any advantage and in the end look like an try and disrupt our enterprise slightly than a severe dispute. Lemonade really raised these questions with us 9 months in the past, and – as we defined on the time – the considerations are meritless and we additional acquired no reply. We’ve not been served any paper from Lemonade: if we’re, we intend to defend ourselves vigorously. This lawsuit seems to be an try and bait the media into overlaying a non-issue.
Supply hyperlink – https://techcrunch.com/2018/06/15/lemonade-files-lawsuit-against-wefox-for-ip-infringement/