Professor Files Lawsuit Against Start-Up Square

Haute Lawyer Square

Square, the credit card processing company, is facing a lawsuit over its origins. A professor at Washington University in St. Louis, Robert E. Morley Jr., is accusing the company and its co-founders of cutting him out of Square.

The professor hit Square’s co-founders Jack Dorsey and James McKelvey Jr. with several charges including breach of fiduciary duty and patent infringement. The complaint has been filed in a federal court in St. Louis.

Morley contends that he came up with Square’s main product and argues that he designed the dongle that reads credit cards and then translates the magnetic strips into audio signals for smartphone recognition. Morley invented and patented the technology and yet he walked away with nothing.

Square spoke out against the lawsuit, claiming Mr. Morley’s lawsuit was baseless. The company has filed suit

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with the professor, claiming he left Mr. McKelvey’s name off of the patent he questions.

Square is currently valued at around $5 billion and is set to go public this year.

Details and photo courtesy of the NY Times