Toronto-based legal AI company Alexi has filed counterclaims in U.S. federal court against Clio, vLex, and Fastcase, alleging that Clio’s $1-billion acquisition of vLex and Fastcase violates antitrust law and is being used to suppress competition in AI-powered legal research.
In the filing, Alexi argues that the deal violates Section 7 of the Clayton Act by consolidating control over one of only three comprehensive primary-law databases of U.S. caselaw — an essential input for training and operating legal AI systems. In the database market, there are only three comprehensive primary-law databases worldwide: Westlaw (Thomson Reuters), LexisNexis, and Fastcase/vLex (now Clio).
The counterclaims allege that Clio is engaging in anticompetitive conduct, tortious interference, and “sham litigation” to cut off Alexi’s access to critical legal data and neutralize it as a competitor.
Alexi says that after Clio acquired vLex and Fastcase, Clio asserted breach of contract claims that it describes as baseless, effectively blocking Alexi’s access to the caselaw data required to operate its AI legal research platform. The company argues that restricting access to primary law will stifle innovation and limit competition across the legal technology market.
Founded in 2017, Alexi develops AI systems that generate authoritative legal research memos using primary caselaw and large-scale historical legal datasets. The company says its technology is purpose-built for legal research, unlike general-purpose AI tools, and depends on licensed access to comprehensive caselaw databases.
“The team at Alexi is world-class at anticipating general trends and leading technological advances throughout the legal industry,” said Mark Doble, CEO of Alexi. “Competition is critical for continued innovation, for both enabling law firms to thrive and for legal services to evolve for the benefit of all clients.”
The counterclaims also highlight Alexi’s four-year collaboration with Fastcase prior to Clio’s acquisition, including Fastcase’s public endorsement of Alexi’s technology. In 2023, vLex named Doble to its “Fastcase 50” list, recognizing the same AI capabilities that Alexi now says Clio is seeking to shut down through litigation.