Lexmark Settles With HP Over Hiring Of Ex-Lexmark Exec

Lexmark said in a press release it made the agreement "despite non-compete restrictions" in Dahlgren's contract when he worked for the Lexington, Ky.-based company. Before quitting Lexmark, Dahlgren was a top executive in the company's profitable North America Printing Solutions and Services Division.

According to Lexmark, the agreement said litigation with HP was resolved on the condition that Dahlgren doesn't interfere with Lexmark's customers worldwide through July 9, 2008, and that he doesn't attempt to hire away any Lexmark employees to work at HP until that time. In addition, the agreement said Dahlgren can't disclose any confidential Lexmark information, "Lexmark will receive $525,000" to satisfy Lexmarks' contention that Dahlgren had to repay it for stock options and restricted stock grants, and any other disputes on the issue would be resolved in Fayette Circuit Court in Lexington.

The HP-Lexmark dispute became an unusual, high-profile scrape between the two major printer companies last year when Dahlgren bolted Lexmark to take the position of head of worldwide enterprise sales for HP's Imaging and Printing Group. HP initially filed suit against Lexmark in California, contesting Dahlgren's non-compete; Lexmark followed with its own suit in Kentucky seeking an injunction.