Compaq settles suit with server maker

From...

By Matt Berger

(IDG) -- Compaq Computer Corp. announced Monday that it has settled a lawsuit against Woodlands, Texas-based RLX Technologies Inc., a server maker run by former Compaq executive Gary Stimac.

Compaq filed suit against RLX in February, alleging that the company was using Compaq's intellectual property and trade secrets to launch its business and that it was engaging in predatory targeting of Compaq employees (see "Compaq sues server start-up over trade secrets," link below).

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Aside from Stimac, a Compaq founder and former senior vice president and general manager of its systems division, RLX employs at least seven former Compaq employees. After the company launched in January, Compaq argued that RLX was targeting its employees to help jump-start its server program.

In a statement, Compaq said it has "resolved all legal issues" and will settle the dispute out of court. The lawsuit was dismissed from the District Court in Harris County, Texas.

Terms of the settlement are confidential and will not be disclosed, the companies said.

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Compaq Computer Corp.
RLX Technologies

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