Motorola Inc. said today it has agreed to settle its lawsuit against its former president and COO, Mike Zafirovski.
Zafirovski recently was named president and CEO of Nortel Networks, and Motorola claimed he had breached his non-compete, confidentiality and no-solicitation contracts.
In agreeing to dismiss the lawsuit, Motorola is requiring Zafirovski to protect the companys trade secrets and refrain from activities that could divulge that information so he doesnt give Nortel an unfair advantage, according to Motorola. The settlement also restricts certain recruiting activities by Nortel and Zafirovski.
The deal includes an $11.5 million cash payment to Motorola and requires Zafirovski to regularly certify compliance to Motorola and Nortel’s board of directors.
Motorola had announced on Oct. 20 its intent to sue Zafirovski and Nortel.