• by Ray Schultz , November 7, 2022

The bitter three-year lawsuit between Email on Acid and 250ok over a service that allows marketers to preview how emails will render in Gmail and other platforms seemed close to settlement in September. 

Not so fast. The defendants — 250ok and its owner Validity — have asked the federal court to enforce the purported settlement agreed to by the parties, saying that it is binding despite additional demands by the plaintiffs.  

Both sides had agreed upon “a certain sum” to resolve the case, according to the October motion. The settlement was mediated by U.S. Judge Michael E. Hegarty, who then recused himself from the case.

While denying the claims in the lawsuit, the defendants were willing to settle to “curb the mounting costs of litigating this dispute,” the filing states.

But Email on Acid proposed an additional requirement.

The demand for further concessions “is improper, in bad faith, and wasteful of Defendants’ and the Court’s time and resources,” the motion argues.

The original agreement — while not in writing — is a done deal, the defense argues, adding that “a settlement agreement is binding and enforceable if the parties agree on all essential terms” under Colorado law.  

The lawsuit concerns Email On Acid’s software-as-a-service that allows users to preview how emails will render in Gmail, Yahoo and other email platforms, and via mobile, desktop and the web.  

Email On Acid alleges that after “licensing its technology and agreeing not to create a competing product, 250ok abused this access to create its own rip-off version of the product, marketed itself as a competitor to Email on Acid, and has attempted to poach Email on Acid’s customers.”

Validity acquired 250ok in 2020 and Pathwire purchased Email on Acid in 2021, and was itself bought by Sinch a few months later.  

The only similar product on the market is one offered by Litmus. 

In September, the sides agreed to release all claims as of the date of the settlement, except for thos  arising “from conduct or circumstances that commenced prior to, but continued after, such date.” 

The plaintiffs demanded that the release apply not only to Email on Acid but also to its parent companies. The defense agreed.