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Nokia litigation and terms of settlement...
I was curious about any money changing hands in the settlement. Here are terms of the settlement that are con-
tained in the Form 424B4 filed 11/19/99 by CacheFlow:
"On September 16, 1999, Nokia IP filed a lawsuit in Santa Clara County
Superior Court naming CacheFlow Inc., and certain officers of the company, as
defendants. These officers were formerly employed by Ipsilon Networks, Inc.,
which was acquired by Nokia in December 1997. Following the acquisition, these
officers became employees of Nokia upon completion of the acquisition. In
essence, Nokia claims that the Company and these officers acted improperly in
hiring Nokia's employees. Nokia also claims that a certain officer of the
Company violated a non-competition provision contained in his employment
agreement with Nokia. Nokia is seeking compensatory and punitive damages and
orders prohibiting the defendants from disclosing or using Nokia's trade
secrets or confidential information and acting in a manner that violates these
officers' contractual and fiduciary duties to Nokia. The Company and other
defendants have filed an answer to this Complaint denying the allegations and
believe that there are meritorious defenses to the asserted claims. On
November 14, 1999, the Company entered into a term sheet with Nokia to settle
the litigation. The term sheet does not require the Company to make any
monetary payments to Nokia. The Company has agreed to not hire or solicit
Nokia employees for six months after November 14, 1999. The Company is
currently negotiating a definitive settlement agreement with Nokia. If the
Company is unable to negotiate the definitive settlement agreement or to
enforce the term sheet, the Company intends to defend the litigation
vigorously. The outcome of litigation is inherently unpredictable and the
results of the litigation may not be favorable to the Company or the other
defendants and could include monetary damages and a court order restricting
our ability to hire Nokia's employees. Although the Company believes that the
ultimate outcome of the dispute with Nokia will not have a material adverse
effect on the Company's consolidated financial position, results of operations
and cash flows, there can be no assurance that Nokia IP will not prevail in
this dispute. If Nokia IP were to prevail in this dispute on all of its
claims, it could have a material adverse effect on the Company's consolidated
financial position, results of operations, and cash flows."
**Looks like the matter may be behind them.
--Bill
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