Texas-based software company files lawsuit against Yuba City’s Ampla Health

A Texas-based software company, which provides an electronic medical record system, filed a lawsuit and asked for a temporary injunction against Ampla Health.

In the civil petition filed in Dallas County Superior Court last week, Indxlogic, Inc. claims that Ampla – headquartered in Yuba City – broke a mutual confidentiality and nondisclosure agreement when it allegedly provided a thirdparty developer access to the software, “which was used to develop a competing system which Ampla is now attempting to commercialize, taking aim directly at Indxlogic’s business and customers.”

The Texas firm indicated monetary damages could be more than $200,000, but no more than $1 million.

In 2015, it is alleged, Ampla signed a purchase agreement with Indxlogic for its product, in which Ampla was forbidden to “assign, timeshare, rent, or otherwise transfer the right to a third party,” according to court documents.

In June last year, Ampla announced it was backing out to save money as it “was poor at reducing labor costs.” In the same email, Ampla disclosed it would hire a private programmer to write new software from scratch, according to the documents. In January this year, Ampla represented that it did not reverse engineer or share confidential information regarding any aspect of Indxlogic.

But later that month, Ampla allegedly backtracked, according to Indxlogic, saying it instead purchased new software from another Texas-based company called Medcode365. And in May, Ampla debuted new software at a Las Vegas trade show, apparently seeking to commercialize its new software in competition with Indxlogic.

“Indxlogic cannot allow Ampla Health to misappropriate Indxlogic’s confidences to concoct copycat software and undercut Indxlogic in the market,” the civil claim states. “Indxlogic has given Ampla Health every opportunity to avoid this dispute by signing a straightforward affidavit saying that Ampla Health did not share Indxlogic’s confidential information with the new programmers. Ampla Health’s refusal to do so speaks volumes.”

Ampla Health CEO Benjamin Flores and Ampla’s attorney Karen Goodman did not respond to an emailed request for comment. The Texas-based attorney representing Indxlogic also did not respond to an emailed request for comment.

In a Tuesday A1 story entitled “Top commodities feel effects of trade war,” a source’s last name was incorrect. The story should have reported Jim Morris as the communications manager for the California Rice Commission.

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