Morningstar Inc. said it will pay $61 million to settle an intellectual property lawsuit filed by a Chicago-based developer of financial software, according to a Securities and Exchange Commission filing.
Morningstar, a Chicago-based investment research firm, said the agreement calls for it to secure a license to the intellectual property and to pay $61 million to Business Logic.
The lawsuit stems from a 2003 contract between Business Logic and Ibbotson Associates, which Morningstar bought in 2006.
Business Logic had given Ibbotson the right to embed and combine its software with Ibbotson’s software to develop “Advice by Ibbotson,” a platform for retirement plan participants.
When the contract between Business Logic and Ibbotson ended in 2009, Ibbotson replaced the Business Logic software with its own. Business Logic claimed that Morningstar and Ibbotson breached the contract and used Business Logic trade secrets to develop the new software.
Business Logic filed a lawsuit in Cook County Circuit Court in 2009.