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PDF Solutions (NASDAQ:PDFS) investors will be focused on Q1 results on Thursday after the close, even as a potentially important lawsuit remains largely under the radar.
PDFS sued Cloud Software Group, formerly TIBCO Software, alleging breach of contract after TIBCO cut off maintenance and support solutions to PDFS in November. PDF said in its lawsuit, filed in December, that the company “built its products to incorporate TIBCO’s Spitfire as its exclusive visualization engine.”
PDF (PDFS) wrote in its most recent 10-K filing that “in November 2023, a provider of enabling technology abruptly stopped providing maintenance and support of their software product to us. As a result, we resorted to legal action, which caused us to incur increased legal expenses beginning in the fourth quarter of 2023. The matter is ongoing, and the long-term impact of this provider’s actions on our business and our customers is unknown at this time.”
PDFS originally tried to have much of its lawsuit against Cloud Software filed under seal, though the court ruled mainly against the effort, with some redactions ordered to be made in court filings.
PDF’s lawyer argued in court that “the publication of this claim and position taken here will, itself, do extreme damage to my client because its customers will become aware before your Honor rules, before your Honor can issue protection, that all service, all maintenance and support is being decapitated by the provider software that we’ve embedded for 15 years in our product,” according to a transcript of the hearing.
PDF Solutions (PDFS) didn’t immediately respond to Seeking Alpha email request for comment.
Investors may get more details on the lawsuit as a case management hearing is scheduled for May 23 in San Jose, California.
The case is PDF Solutions v. Cloud Software Group Inc. The case number is 23-CV-427458.
