Gartner Prevails In Magic Quadrant Legal Challenge
ZL Technologies has lost the first round in its legal challenge against Gartner Group's use of its "Magic Quadrant" classification of tech companies.
Brian Tarran at Research. reports:
District Court Judge Jeremy Fogel agreed with the IT analyst's argument that its Magic Quadrant reports and the positioning of ZL Technologies in the 'niche' quadrant constituted "non-actionable opinion". ZL had argued that its placement in the reports was derogatory "because they are understood by technology purchasers as a warning, by Gartner, that ZL and the ZL products are not good choices for enterprise email archive applications".
ZL has 30 days to file an amended complaint. It had asked for damages of $132m.
ZL had the backing of many tech companies who believe that to get a good placement in the "Magic Quadrant" they need to spend large sums to become a Gartner client.