Haynes and Boone Achieves $12.5 Million Verdict For Client Data Center Systems


– Haynes and Boone, LLP attorneys have secured a $12.5 million jury verdict on behalf of Dallas-based Data Center Systems (DCS) in a case alleging fraud related to a three-year agreement with Computer Network Technology Corporation (CNT) concerning data center connectivity products. CNT is now known as McData Services Corporation, a wholly-owned subsidiary of Brocade Communication Systems.

U.S. District Court Judge Sam A. Lindsay of the Northern District of Texas has entered final judgment in the case, capping three years of litigation. With interest, the total award amount was more than $14.5 million.

In the 2003 agreement, DCS acquired the rights to two fiber optic product lines. CNT agreed to promote, market and sell both product lines and not to compete with DCS during the entire three-year term of the agreement.

Filed in March 2006, the Data Center Systems lawsuit charged that CNT never intended to perform its obligations under the agreement. After eight days of trial in United States District Court in Dallas, the jury concurred, finding by clear and convincing evidence that CNT had committed fraud and that DCS suffered lost profits of $12.5 million.

Data Center Systems is a leading designer, manufacturer and installer of fiber optic structured cabling solutions for storage area networks and mainframe environments in data centers worldwide. Prior to its acquisition in 2005 by McData Corporation, CNT sold switches, gateways and storage management software for large computer networks. McData Corporation was acquired by Brocade Communication Systems of San Jose, California, in 2007.

The Haynes and Boone team included partners David Drez and Stephen M. Pezanosky and Ben Mesches, and associate Josh Borsellino. CNT was represented at trial by Harvey Cohen of Austin and Susman Godfrey, LLP partner Terrell W. Oxford of Dallas.

Haynes and Boone, LLP is an international corporate law firm with offices in Texas, New York, California, Washington, D.C., Mexico City and Moscow, providing a full spectrum of legal services. With almost 550 attorneys, Haynes and Boone is ranked among the largest law firms in the nation by The National Law Journal. The firm has been recognized as one of the "Best Corporate Law Firms in America" (Corporate Board Member Magazine, 2001-2009), as one of "The Best 20 Law Firms to Work For" (Vault.com, 2009), and as a Top 100 law firm for both diversity (MultiCultural Law Magazine, 2009) and women (Women 3.0, 2008).

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