Aristotle Open Letter

Aristotle Open Letter

The following letter was sent out by Aristotle CEO, John Aristotle Phillips, on December 19, 2008. Several links within the letter below can be clicked for further information: Subject: Update on NGP Discounts; Deceptive Marketing Litigation.

NGP has been sued in U.S. District Court (D.C. CA 05-1700) for allegedly making false and deceptive advertising claims about its exclusive devotion to “Democrats and their allies”, and trading on that supposed purity for commercial gain. Recent developments relating to the case are:

  • NGP recently admitted in a public filing that it does have a “Reseller Agreement”, which NGP wants to keep entirely secret.Example: Automotive Free International Trade PAC Expenditure Detail Contributions from this PAC to federal candidates (14% to Democrats, 86% to Republicans) - $593,500
    Recipient Amount Description Date
    Capitol Advantage [NGP’s Software**], McLean, VA $6,000 computer software - annual renewal 01/04/08
    CHAMBLISS FOR SENATE, ATLANTA, GA $5,000 contribution 11/12/08
    CHAMBLISS FOR SENATE, ATLANTA, GA $5,000 contribution 09/11/08
    CHAMBLISS FOR SENATE, ATLANTA, GA $5,000 contribution 05/02/07
    ** NGP has admitted this reseller agreement, which it wants to keep secret, on page 3 of the publicly filed memorandum supporting its latest motion to depose the reporter who is seeking access to the agreement and other sealed documents in the case. NGP also admits this agreement at pages 32-33 of the public transcript of the summary judgment hearing before Thomas Hogan, U.S District Judge, in D.C. CA # 05-1700.
  • Public information shows that, under this agreement, NGP’s software is used by political groups that provide significant support to Republicans and GOP interests. Public documents show that some of these groups paid significantly less than what Democrats have been charged by NGP(see table above).
  • NGP customers have told us that they recently contacted NGP seeking a truthful explanation about NGP’s “Reseller Agreement”, or to ask about refunds or discounts.
  • NGP reportedly removed significant charges from the bill of one congressional campaign as soon as the campaign raised the issue of Aristotle and recent mailings concerning the NGP lawsuit.
  • An award-winning freelance journalist who writes for The New York Times filed a motion with the court seeking access to NGP officers’ testimony and other documents filed under seal in the case. [view certification]
  • Among the reasons stated in the reporter’s motion to unseal documents was the potential newsworthiness of the information, in light of: “Mr. Pearlman’s important role in the Hillary Clinton campaign” for President; NGP’s “”possible deception of The Wall Street Journal” and “NGP’s considerable efforts to keep all aspects of its relationship [with the reseller] a secret.” NGP has vigorously opposed this motion to make those documents public. [click here]
  • NGP also has filed a separate motion to depose the journalist, who responded with an affidavit saying in part, “NGP’s attempt to take my deposition to assess my journalistic bona fides strikes me as both an irrelevant response to my motion [to unseal documents about the Reseller Agreement] and possibly an attempt to intimidate me.” [click here]
  • NGP’s founder recently sent out a newsletter “message” discussing the lawsuit, but did not mention the secret Reseller Agreement; the immense support given to Republicans by groups using NGP’s software; NGP’s opposition to the reporter’s motion to obtain the sealed documents; or NGP customer refund/discount requests.[click here]

We have placed more details on the website www.notrobinhood.com. There you will find a listing compiled from FEC reports about Republican candidates (including Saxby Chambliss and Norm Coleman) who in the aggregate received millions of dollars from groups using NGP’s software. [Note: It turns out that these groups also gave to the Chambliss run-off election effort and the Coleman recount fund.] You will also find our point-by-point response to the errors and omissions in NGP’s newsletter “message” about the lawsuit [click here].

At the website you may request to be kept informed of developments in the litigation that could affect you, and any news reports on the matter. [click here]

In a 2008 telephone survey, current and former NGP clients were asked:

“If your campaign software vendor claimed only to be serving your party’s interests, but this proved not to be the case, do you believe you would be entitled to a full refund, a partial refund, or a discount on future services?”

81% of those who were asked answered in the affirmative.

FEC records show payment to NGP Software, Inc. from you or your campaign committee during the time period when NGP has been claiming to serve “only Democrats and their allies”. Further information as to how this all may affect you may also be found at [ www.notrobinhood.com. ]

Sincerely,

John Aristotle Phillips
CEO
Aristotle www.aristotle.com

P.S. You may be considering that now is the right time to evaluate alternatives to NGP, before paying more money to NGP. If so, I hope you will consider Aristotle. Early 2009 (after the year-end filing) is the ideal time to upgrade, as this can save you money, allow us to seamlessly convert your data, and give you top-rated software, service, and fundraising tools on more flexible terms than you’re getting from NGP. Satisfied democratic clients who were successful in the last elections have offered to provide references. I hope you will contact me personally at 202-258-7305 or jap@aristotle.com. Thanks again. JP