Recently, a federal district court said that
Dun & Bradstreet Corp.
) ought to face charges for adopting aggressive sales tactics as
per a lawsuit filed by a small Seattle-based construction firm,
O&R Construction. We note that the Western District of
Washington court had denied DNB's plea to dismiss the lawsuit
earlier this month.
As per the lawsuit filed by O&R, DNB had filed a bad credit
report stating that the company was slow in repaying debt and
hence may end up as a defaulter. This report, in turn led the
) to lower its credit line by $8000.
As per the senior executives of O&R Construction, the company
had to cough up a significant sum of $1000 per month to Dun &
Bradstreet Credibility Corp. in order to revive its credit
Dun & Bradstreet Corp. was spun off from DNB sometime in
2010. Dun & B Credibility Corp. provides businesses with
credit management services and tools. DNB, however, has denied
its involvement in the aforesaid case and called D&B
Credibility a separate legal entity.
DNB Corp. is a provider of business information. Their
information and technology solutions help businesses reduce
credit risk, find profitable customers, manage customer and
vendor relationships more efficiently and collect cash and
DNB's high-margin business model, strong international growth
potential, emerging market growth opportunities, strategic
investments, incremental cost savings and new product pipeline
will drive growth over the long term.
However, it is believed that increasing competition from
) will hurt profitability going forward.
Currently, DNB has a Zacks Rank # 3 (Hold).
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