FOR IMMEDIATE RELEASE
Court Grants Applied Narrow Relief While Rejecting Reverse Engineering and Derivative Product Claims
Ruling Has No Expected Impact on Existing Customers; Comulate's Motion to Protect Customer Access Remains Pending
SAN FRANCISCO – February 12, 2026 – A federal court yesterday granted Applied Systems ("Applied") injunctive relief in Case No. 25-cv-14251 (N.D. Ill.). The order requires Comulate to stop using information obtained through a sandbox account it used to develop its integration with Applied's Epic software, and to not sell any products developed with that information to new customers. The ruling followed Comulate's candor to the Court that it used the account for integration development rather than insurance operations, in breach of the account's "permitted use" terms. Existing joint customers are expressly excluded from the product restrictions. The order is backed by Applied posting a bond, and Comulate will fully comply.
Comulate's preliminary injunction motion in Case No. 26-cv-00591, which seeks to prevent Applied from interrupting joint customers' long-term access to Comulate, remains pending before the same court. Applied still has not contested any of the facts underlying Comulate's federal antitrust counterclaims that Applied abandoned its open platform, leveraged its monopoly to foreclose competition, conspired with Ascend to monopolize the market, and misled its own customers about prior court rulings.
The court rejected Applied's claims that Comulate reverse engineered its software, finding Comulate's technical expert "more convincing," and rejected Applied's claim that Comulate's products are derivative of Applied's software. Applied had already dropped its original trade secret allegations from its amended complaint after Comulate showed the claimed trade secrets were publicly posted on Applied's own website. Applied has not identified a single Comulate product feature that incorporates any Applied trade secret.
Despite this, the court accepted Applied's claim that a single sandbox account conferred an unfair advantage over Applied's competing product, Applied Recon. Comulate respects and will fully comply with the ruling, but respectfully disagrees that any such advantage existed. Comulate's core product was created two years before the sandbox account existed, and customers who have evaluated Recon have uniformly rejected Applied Recon on its merits. The court's own cited evidence of competitive harm was a customer who "conducted a thorough vetting process" and "selected Comulate as the best solution."
This ruling addresses a contract breach involving the sandbox account. It does not address Applied's anticompetitive scheme to eliminate a competitor it could not acquire or outbuild, including by interrupting customers' access to a system they independently selected and depend on for their operations. Those claims remain before the court, and Comulate is confident in its position as it looks forward to a resolution on the merits.
About Comulate
Comulate is the technology company leveraging AI to transform the insurance industry. Powering the largest insurance brokers, Comulate's category-defining accounting automation eliminates 90%+ of manual work, creating a radically exciting future for the insurance back office.
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