A brief legal battle between DAT Freight & Analytics and OTR Solutions reached its conclusion.
The legal battle came after DAT acquired Outgo, a factoring specialist competing with OTR, in May. OTR Solutions sued DAT on May 30, claiming that the acquisition violated a non-compete agreement between OTR and DAT.
A judge on June 10 temporarily ordered DAT to stop using the services of Outgo while the lawsuit moved in the courts.
“We believe the suit is without merit and will defend ourselves vigorously,” DAT said in a statement after the order, according to the S&P Journal of Commerce. “We are concerned that OTR’s actions directly impact the cash flow of our carrier customers.”
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Two days later, OTR filed an emergency motion, alleging that DAT disregarded the judge’s ruling by only pausing new client acquisitions. A judge granted an emergency hearing to take place on June 17. However, on June 18, DAT announced that the parties reached an undisclosed resolution to their lawsuit that allowed it to continue providing Outgo’s services.
“DAT thanks OTR for their years of partnership and their collaboration in reaching a constructive outcome,” DAT said in a press release announcing the resolution. “Outgo, a DAT product, is fully operational through the DAT One platform—delivering fast, transparent payment services that help carriers manage cash flow and keep their businesses moving.”
