Update: Response from McGraw Hill: “We believe that Reed’s legal claims are without merit, and we intend to defend against them vigorously. We take these allegations very seriously and are committed to ensuring that all employees comply with our Code of Business Ethics.”

SEE ALSO: Reed Elsevier Puts Chunk Of RBI-US Up For Sale; Smith Out As CEO

This is as wild as it will ever get in the traditionally boring B2B world: earlier today Reed Construction Data, part of Reed Business USA, filed a lawsuit in U.S. District Court for the Southern District of New York against McGraw-Hill Construction Dodge, a unit of McGraw-Hill (NYSE: MHP), alleging that Dodge secretly accessed confidential and trade secret information from RCD since 2002, by using a series of fake companies to pose as RCD customers. It is asking for an unspecified amount in “lost profits and punitive damages, trial by jury, and injunctive relief as a result of Dodge’s misuse of RCD’s proprietary construction project information,” the lawsuit says.

The gist of the alleged fraud: Dodge hired consultants to subscribe to RCD’s confidential data (from its online Reed Connect service) under the cover of fake names and companies. It then allegedly manipulated the information to create misleading comparisons between Dodge’s and RCD’s products and services in an effort to mislead the marketplace, the complaint says. There’s a “The Spy”, and even a “Mr X” in the lawsuit. Really. If true and proven in court, this seems like very serious trouble for McGraw-Hill.

More details in release. The full lawsuit is embedded after the jump.