Paxfire Refutes Allegations in Lawsuit

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Plans to Pursue Compensation for Damages Caused

Alan Sullivan, CEO and co-founder of Sterling VA-based Paxfire, Inc., issued the following statement regarding a lawsuit filed in the Southern District of New York (11-CIV-5436) by Milberg, LLP (a successor firm to the Milberg Weiss law firm) against the company and one of its ISP customers. The statement appears below:

“This lawsuit is without merit, and harmful to our business and that of our partners. Let me respond to the two major accusations in the lawsuit.

"First, the lawsuit alleges that Paxfire collects, analyzes and sells user information. This is completely false and has absolutely no basis in fact.

"Paxfire does not and has never distributed or sold any information on users, either individually or collectively. Paxfire does not analyze end user searches, does not hold any history or database of user browsing or search, and does not profile users in any way. Moreover, Paxfire has no plans to change this policy. To repeat: We never, ever collect, monitor, store or sell personal data on users, collectively or as individuals, and we never have.

"Second, Paxfire does not hijack searches or 'impersonate search engines.'

"This would be fundamentally contrary to our service mission, which is to improve the user experience by helping users arrive at their intended website after having mistyped a web address. We are all about helping customers navigate the web, and not about searches. We partner closely with our ISP customers to ensure the service is operated not only in full accordance with the law and end user agreements, but also in a way that provides a good user experience. For example, when we have to guess the intended destination from a “bad” address, our results page includes an explanation of how they landed there and provides an option to opt-out of the service.

"Finally, we want to make clear that while it is without merit, this lawsuit and its allegations are extremely harmful to our reputation and those of our partners. Under Rule 11 of the Federal Rules of Civil Procedure, a party has an obligation to ensure a foundation for his or her allegations. Clearly, this was not done adequately by the plaintiff in this case. Accordingly, Paxfire intends to seek the full sanctions available to it under the law, to vindicate the organization and to make it whole from the damages caused by this lawsuit.”


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