Nashville company preemptively sues Kingsport-based rival to block threatened libel lawsuit

In the latest local case involving corporate libel, West End-based Executive Trading Solutions has filed a preemptive lawsuit in Middle Tennessee District Court against Kingsport-based Computershare Executive Services.

A slight twist in this case of dueling financial software providers, however, is that the complaint is primarily concerned with the assertion that no libel has taken place, at least on the part of ETS. (last month's dispute between two dental care providers was more straightforward in that regard.) Rather, the filing is a preemptive move seeking a declaratory judgment that would prevent Computershare from filing a libel complaint as the complaint claims it has threatened.

According to the complaint, on Oct. 29 of last year Computershare sent a letter to ETS (found on page 5) accusing the company and CEO Andrew Neal of libeling Computershare to “clients and prospective clients.”

In the letter, Computershare claims to have received information that Neal had spoken to its clients and prospects telling them that Computershare software, as the letter quotes, “fell short at UBS.”  Prior to becoming the CEO of ETS, Neal was Executive Services Group Manager at UBS Financial Services for eight years.

In the complaint, ETS’ attorneys assert that neither Neal nor the company knowingly spoke to any of Computershare’s current or prospective clients. Further, the filing claims that nowhere in its communications with ETS does Computershare allege that Neal or his company made any statement of fact, therefore, it claims, none of the alleged statements can be false.

The filing goes on to claim that the alleged threatening of legal action by Computershare has hampered ETS’ ability to raise additional capital, among other damages.

The complaint seeks a judgment essentially saying that ETS has done nothing wrong and that Computershare not be allowed to sue.

Representing ETS are Jonathan Cole and William A. Lewis both of Baker Donelson. Computershare is represented by Jimmie C. Miller of Hunter, Smith & Davis in Kingsport. Miller could not be reached for comment this morning.