Toronto-based Alexi said it laid off two-thirds of its staff in recent weeks as it fights a lawsuit fellow Canadian legaltech company Clio filed in December. At the time, Clio alleged that Alexi breached their data usage agreement. Alexi now says the December suit is designed to “neutralize Alexi as a competitor,” according to a counterclaim filed Friday in Washington, D.C. Neither claim has been tested in court. (The Logic)

Talking point: The fight has escalated since last month, when Clio first claimed that Alexi was creating a rival product with data owned by a Clio subsidiary. In its new filing, Alexi denied many of Clio’s claims, which included unfair competition, breach of contract, trademark infringement and misappropriation of trade secrets. Alexi said in its court filings that before the litigation battle, it was in talks to be acquired for more than US$100 million, but Clio’s December suit is “sowing fear among customers and potential acquirers.” Clio spokesperson Pamela Smith called Alexi’s claims “baseless” and said they add noise to what is otherwise “a dispute about compliance with a straightforward licensing agreement.”