http://www.publishersweekly.com/article/CA514709.html
Books Are Fun Sues Founder
by Jim Milliot -- 4/4/2005
Article
Reader's Digest's Books Are Fun division has filed a motion to amend
its lawsuit against the display marketing company Reader's Choice to
include Earl Kaplan, the stepfather of RC founder Stephen Rosebrough
and the founder of BAF. Kaplan sold BAF, which sells books and other
merchandise through temporary displays in schools and businesses, to
RD in 1999. BAF filed a lawsuit against Reader's Choice in November,
charging Rosebrough, a former BAF v-p, and three others with
stealing trade secrets in setting up the new company (News, Nov. 15,
2004).
According to BAF's motion, Kaplan had served as chairman of RC for a
short period and loaned Rosebrough $100,000 to start the company.
Shortly after BAF filed its lawsuit, Rosebrough announced he was
closing down RC, while at about the same time Kaplan was launching
Imagine Nation Books, another display marketing company. BAF alleges
that Imagine Nation "was set up for the purpose of taking over the
business of Reader's Choice, while attempting to avoid any
liability" for RC. The complaint further charges that Imagine Nation
has already taken over some RC contracts, hired some RC employees
and signed some RC sales reps.
Cyril V. Smith, an attorney for Reader's Choice, described the
addition of Kaplan and Imagine Nation as an attempt by BAF to make
the lawsuit longer and more expensive. He also denied the allegation
that Imagine Nation is a "successor" company to RC.
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