Compaq settles suit with server maker

Compaq Computer Corp. said Monday it has settled a lawsuit against 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 intellectual property and trade secrets to launch its business and engaging in predatory targeting of Compaq employees. Aside from Stimac, a founder of Compaq 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 news release, Compaq said Monday 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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