SAN DIEGO – A San Diego performance-based marketing technology company alleges it lost business because leads supplied to it were fraudulent.

Underground Elephant Inc. filed a complaint on Sept. 1 in the U.S. District Court for the Southern District of California against Insurance Zebra Inc. alleging breach of contract, fraud, negligent misrepresentation and other counts.

According to the complaint, the plaintiff alleges that on May 2015, it entered into an agreement with the defendant whereby the defendant would place ads and then the plaintiff would purchase leads from defendant at a price of $6.25 to $8 per lead. The suit states the plaintiff paid $2.3 million and that the defendant claims it still owes $575,699 for April through July. The plaintiff alleges that most of these leads were invalid and fraudulent.

The plaintiff also alleges that a former employer who left to work for the defendant disclosed trade secrets, and that the defendant is using those secrets for its benefit.

The plaintiff holds Insurance Zebra Inc. responsible because the defendant allegedly obtained plaintiff's trade secrets by improper means, provided fraudulent leads to plaintiff and caused plaintiff to lose clients.

The plaintiff requests a trial by jury and seeks judgment against defendant, $2.3 million in damages, injunctive relief, interest, costs of suit and further relief as the court deems just. It is represented by Joseph Leventhal and Joshua M. Heinlein of Dinsmore & Shohl LLP in San Diego.

U.S. District Court for the Southern District of California Case number 3:16-cv-02215

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U.S. District Court for the Southern District of California
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San Diego, CA - 92101

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