Reed Construction Data sues McGraw-Hill Construction, alleging corporate spying

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New York—Reed Construction Data, a unit of Reed Elsevier, Thursday sued its chief competitor, McGraw-Hill Construction, alleging that Dodge, a unit of McGraw-Hill Construction that lists construction projects, has engaged in corporate spying since 2002.

“This is a case of brazen industrial espionage committed by a sophisticated corporate entity with the intent of forcing its top competitor out of the marketplace,” the lawsuit stated.

The suit accuses Dodge of using consultants to pose as Reed Construction Data customers to gain more insight into RCD's business. The complaint alleges 11 counts of misconduct by Dodge, including misappropriation of trade secrets, tortious interference with prospective economic advantage, attempted monopolization and violation of the Racketeer Influenced and Corrupt Organizations (RICO) Act.

“McGraw-Hill Dodge has used our information to deceive and confuse the market about RCD and the data we offer. This was an attempt by Dodge to force RCD out of business and obtain a monopoly over the construction data industry,” Iain Melville, CEO of RCD, said in a statement. Law firm Troutman Sanders filed the case on behalf of RCD.

A McGraw-Hill spokesperson said, “We intend to vigorously defend ourselves against Reed Construction's legal claims. We take these allegations very seriously and are committed to ensuring that all employees comply with our Code of Business Ethics.”

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