Reader's Digest's Books Are Fun division has filed a motion to amend its lawsuit against the display marketing company Reader's Choice to include Earl Kaplan, the stepfather of RC founder Stephen Rosebrough and the founder of BAF. Kaplan sold BAF, which sells books and other merchandise through temporary displays in schools and businesses, to RD in 1999. BAF filed a lawsuit against Reader's Choice in November, charging Rosebrough, a former BAF v-p, and three others with stealing trade secrets in setting up the new company (News, Nov. 15, 2004).
According to BAF's motion, Kaplan had served as chairman of RC for a short period and loaned Rosebrough $100,000 to start the company. Shortly after BAF filed its lawsuit, Rosebrough announced he was closing down RC, while at about the same time Kaplan was launching Imagine Nation Books, another display marketing company. BAF alleges that Imagine Nation "was set up for the purpose of taking over the business of Reader's Choice, while attempting to avoid any liability" for RC. The complaint further charges that Imagine Nation has already taken over some RC contracts, hired some RC employees and signed some RC sales reps.
Cyril V. Smith, an attorney for Reader's Choice, described the addition of Kaplan and Imagine Nation as an attempt by BAF to make the lawsuit longer and more expensive. He also denied the allegation that Imagine Nation is a "successor" company to RC.
Publishers Weekly regrets certain inaccurate statements in our April 4 article about the lawsuit filed by Books Are Fun against Reader’s Choice Books. Earl Kaplan lent money to Reader’s Choice, not to Steve Rosebrough. Also, the money was not lent to "start the company." Instead, Kaplan made the loan almost 10 months after Reader’s Choice opened for business; nearly a year after Rosebrough had left Books Are Fun; and after Kaplan’s non-compete agreement with Books Are Fun had expired.
