Judge Rejects CollegeNET, Inc.'s Attempt to Raise Damage Award Against Xap Corporation
Culver City, CA – March 26, 2007 –
A Federal District Judge in Portland, Oregon rejected the efforts of CollegeNET, Inc. to increase a damage award to $35 million and, following an advisory verdict rendered by a jury in October, confirmed the prior award of $4.5 million.
The award was based on the jury's finding that Xap had violated unfair competition provisions of the Lanham Act.
The judge also awarded attorneys fees and costs to CollegeNET based on a finding of "exceptional circumstances" in the case.
Liz Dietz, Xap's CEO, explained that the challenged Lanham Act practices all occurred in the past.
"We are, of course, disappointed in the outcome of this phase of the case, but it all relates to practices discontinued some time ago which affected a small percentage of Xap accountholders.
We believe there are substantial grounds for reversal on appeal.
While the case proceeds, Xap will continue to focus on serving the many educational institutions and students who depend upon Xap products for a wide range of services relating to planning for, preparing for, and applying to college."
About Xap
Xap Corporation, the trusted industry choice for one-stop integrated education and career solutions, empowers successful lifelong transitions through market-leading innovations and smart, flexible tools that are reliable, valid and secure.
Xap's products have helped over eleven million students in the past decade and are presently available in over 15,000 North America schools.
