IBM and Plasmon Come to an Agreement Regarding a Dispute Involving Steve Murphy

IBM and Plasmon have come to an agreement regarding a dispute involving Steven Murphy, former CEO and President of Softek Storage Holding, Inc., and current CEO of Plasmon, Inc. In 2007, IBM acquired Softek.

As part of the acquisition, IBM entered into a Holder Agreement with Mr. Murphy which contains provisions prohibiting Mr. Murphy from soliciting and hiring certain IBM employees after he left IBM.

After Mr. Murphy’s departure from IBM, and subsequent announcement as CEO as Plasmon plc and Plasmon, Inc., he engaged in conversations with and offered employment to several IBM employees in violation of his Holder Agreement. Prior to their employment with IBM, these employees were all employed by Softek.

As a result of these solicitations and hirings, a dispute arose concerning the interpretation and application of the terms of the Holder Agreement. In order to resolve any claims arising out of the dispute, Mr. Murphy and Plasmon have entered into a confidential settlement agreement with IBM, including an undisclosed amount of damages resulting from the hiring of IBM employees by Mr. Murphy.

“IBM is pleased that it could resolve this dispute amicably,” said David Johnson, vice president of Corporate Development. “IBM takes these matters seriously and will strictly enforce its legal rights as set forth in the Holder Agreements it enters into with executives of acquired companies.”