Avoiding a trial that was set to begin this week, Top 40 distributor Standard Register (asi/333647) has settled a lawsuit it recently filed against two former employees. The Ohio-based firm had alleged Craig Stockmal and Lynn Smith used trade secrets and customer contacts to start a similar company following their employment at Standard Register. Through an attorney, the pair countered that their business, Focused Impressions, is a software company that did not compete with their former employer.
As part of the settlement, Stockmal and Smith have agreed to return or destroy all confidential information that belonged to Standard Register. The business partners have also pledged not to contact Liberty Mutual Group through the end of September of 2015. Published reports indicate the insurer was the major customer that the dispute focused on.
“From the beginning, Mr. Stockmal and Ms. Smith have maintained that the claims asserted against them by Standard Register were without merit,” attorney David Rich, who represents Stockmal and Smith, told the Dayton Business Journal. “The parties’ settlement, which effectively precludes my clients from contracting with a single Standard Register customer for the next six weeks, bears this fact out.”
Officials from Standard Register have not publicly commented on the settlement. The firm, which was purchased this summer at auction by Taylor Corporation, filed for Chapter 11 bankruptcy protection in March as it sought to reorganize debts.