Motorola Inc has said it has reached an agreement to settle the lawsuit against its former president and COO Mike Zafirovski who recently accepted the CEO post at wireless equipment rival Nortel Networks Corp.
Motorola would receive $11.5m in cash from Nortel and Zafirovski, as reimbursement of his separation payout from Motorola. Nortel and Zafirovski also would be restricted in certain recruiting activities, according to a Motorola statement. And Zafirovski cannot disclose any sensitive Motorola information in his new job.
Motorola sued Zafirovski claiming his move to Nortel breached the multiple non-compete and confidentiality agreements he had signed with Motorola. His appointment to Nortel’s top job also threatened illegal misappropriation of Motorola trade secrets, Motorola alleged.
The settlement also includes restrictions, until July 1, 2006, on Zafirovski’s communications with certain Nortel customers. He also will be limited in his advice to Nortel on competitive strategy or analysis relative to Motorola, according to a Nortel statement.
Nortel said Zafirovski would begin work at the company on November 15, as originally announced.