The day of reckoning for Borland International Inc is looming as lawyers prepare for the trial to assess damages owed to Lotus Development Corp over infringement of 1-2-3 copyrights in Quattro Pro in two weeks’ time – and Borland’s cash on hand will slump to $47m by June, less than half the minimum damages Lotus will seek in the trial. In filings late on Friday, Lotus disclosed that it will seek at least $100m and probably more than $300m damages after winning the suit in 1993 – and Borland’s appeal of the verdict will not be heard until after the damages trial. Borland wants the damages trial to be postponed until after the appeal is heard, but according to the Wall Street Journal, Lotus argues that Borland’s finances are deteriorating so rapidly that a further delay could jeopardise any recovery it may win. Borland shares rose 62.5 cents to $8.75 on Friday on gossip that the two were in talks to settle the matter out of court, but insiders on both sides say that while a settlement has been discussed in the past, no such contacts are currently under way. The lawsuit is a powerful poison pill for Borland, since the Scotts Valley company would be a prime acquisition candidate if it were not for the damages claim hanging over it.
