Legal Battle Between Applied Systems and Comulate Raises Antitrust Concerns
The ongoing legal dispute between insurance technology firms Applied Systems and Comulate has intensified, as Comulate introduced a federal antitrust lawsuit. Previously, both companies engaged in litigation, with Applied Systems accusing Comulate of misappropriating trade secrets. In response, Comulate claimed that Applied's litigation was baseless and aimed at stifling market competition.
As of early 2026, Comulate, now known as Ardent Labs, filed a legal action in the U.S. District Court for the Northern District of Illinois. The lawsuit accuses Applied Systems of breaching the Sherman Antitrust Act by engaging in practices that restrict competition. These practices allegedly involve unwarranted lawsuits, spreading misleading allegations about intellectual property theft to Comulate’s clientele, and collaborating with third parties to dominate the market for automated insurance accounting software.
Comulate, established in 2022, has rapidly gained a reputation for improving operational efficiency and reducing expenses through its AI-driven platform. Comulate claims that after declining an acquisition offer from Applied Systems in 2023, Applied Systems attempted to undermine its business. Allegations include disrupting customer relationships and removing Comulate from Applied's agency management system, Epic, a data platform integral to many industry participants.
Applied Systems, responding to the lawsuit, refuted Comulate's allegations, arguing the claims are distractions from Comulate's own purported fraudulent activities. A representative stated that Comulate's claims lack substantial evidence and are tactical legal maneuvers. Applied Systems remains committed to protecting its intellectual properties and is prepared to prove Comulate's alleged misconduct in court.
Initially, Comulate filed a lawsuit in the Delaware Court of Chancery in early December but withdrew it voluntarily. Applied Systems had previously filed a lawsuit in November in the U.S. District Court for the Northern District of Illinois, claiming Comulate engaged in deceptive practices to gain unauthorized access to Applied’s software for trade secret theft.
In summary, the ongoing legal activities between these insurance technology entities underscore significant tensions around competitive practices and intellectual property within the industry. This situation has potential implications for market dynamics and operational strategies in the insurance sector.