Software developer wins multimillion-pound dispute against former business partner

Software developer THJ Systems, advised by law firm Freeths, has won a multimillion-pound High Court case against former business partner Dan Sheridan.
The court awarded £3.35m in damages after ruling that Sheridan failed to properly promote THJ’s OptionNET Explorer software, leading to lost profits.
THJ and Sheridan co-founded the Leicester-based business in 2010 but parted ways in 2016 after the relationship broke down.
The court previously ruled in 2022 that THJ was justified in removing Sheridan, citing his lack of promotion as a key issue.
The case examined the financial impact of Sheridan’s actions, with the court concluding that THJ missed out on significant profits due to stagnated subscriber numbers.
Martin Noble, intellectual property & media partner at Freeths, said: “This judgment follows on from our successful visit to the Court of Appeal 12 months ago, when it put in place an injunction against Sheridan and reiterated that copyright did subsist in the screenshots of the software that Sheridan had been using.
“THJ was able to demonstrate to the court’s satisfaction that the business had been adversely affected by Sheridan’s failures and an appropriate award has been made. Unfortunately, Mr. Sheridan did not take advantage of the several opportunities he was previously given to avoid the trials in this case and the associated significant costs and expenses. That should serve as a warning to businesses involved in a dispute to consider alternative dispute resolution at every stage.”
Andy Mitchell, owner of THJ, said: “We are pleased that this chapter of the proceedings has been decided in our favour. It goes some way to recognising the failures of my former business partner that resulted in a very significant loss of subscribers to my software. It continues to be a market-leading platform for those who want to improve their skills as an options trader.”