Sarine Unit to Sue over Alleged Fraud

RAPAPORT... Sarine Technologies subsidiary Galatea will be taking legalaction against a manufacturer in Surat, India, claiming fraudulent use ofSarine's Galaxy inclusion-mapping technology and software, the companyannounced Thursday. Galatea noted a long-term discrepancy between the weights ofthe rough stones the Galaxy system was processing and those the manufacturer wasreporting to the company, resulting in the client consistently underpaying forthe technology, Sarine said. An internal analysis by Galatea revealed that the manufacturerhad managed to hack the Galaxy software to manipulate the weights it reported,according to Sarine. Galatea discovered the discrepancy while auditing themanufacturer's use of the software, the company added. "The Sarine Group is taking proactive and aggressive actionsaimed at protecting our intellectual-property rights, including againstmanufacturers who are engaged in the use of infringing products and services orany other fraudulent use of our technologies," said David Block, Sarine's CEO. Sarine plans to release the manufacturer's identity afterfiling the lawsuit within the next few weeks. The company will be seekingcompensation for damages.