By Randall Gregg, Editor Emeritus
RALEIGH – Vivek Wadhwa, the well-known founder and former CEO of the Relativity software firm, divulged at the RTP-TV anniversary party on Friday that a settlement agreement between him and his company and its investors is imminent. “We have agreed on the terms…with a handshake,” said Wadhwa at the event. “I am very happy over the agreement.”
The settlement papers have not yet been signed, said Wadhwa, but he said that the general terms were agreed upon. Over drinks at the RTP-TV event, Wadhwa added that he was glad that the series of lawsuits and countersuits was about to come to an end and that both sides could come to an amicable agreement.
“I can’t speak on their behalf, but I feel like both sides are happy,” he said. “I feel good about the settlement.”
He added that he felt that Relativity was still a good company with lots of opportunity and that he knew it would continue to do well.
“I’m still very bullish about the company,” he said. Wadhwa noted that Relativity has recently expanded its relationship with IBM. According to press releases on Relativity’s site, IBM is now shipping Relativity’s software as part of its own software packages.
DETAILS NOT RELEASED
Wadhwa said he could not release details of the deal and would not elaborate on what he will receive from the Relativity as part of the agreement. He also would not comment on how much of the firm’s stock he would retain.
He did comment that he felt a breakthough in the controversy came recently when Relativity and its investors hired a new law firm, Ellis & Winters of Cary, to take over their case.
“My lawyers, Reid Phillips and Bob Singer [of law firm Brooks Pierce McLendon Humphrey & Leonard] were incredibly competent, but it took a great mediator, Jon Harkavy, and Relativity’s hiring of a smart new law firm to break the ice,” commented Wadhwa.
HISTORY OF THE DISPUTE
Vivek Wadhwa started Relativity in 1997 and the firm specializes in taking older computer “legacy” systems that used mainframes and modernized them to new platforms. Clients and partners have included IBM, Charles Schwaab, the U.S. Air Force, and others.
The company grew during the tech boom and employed several hundred workers at its Cary headquarters. As it grew, it attracted investors including CEC, Intel, Noro Moseley, Sojitz Corporation, Tall Oaks Capital Partners, Wachovia Strategic Ventures, and the Wakefield Group.
Wadhwa suffered a heart attack while he was CEO and he later agreed to hand over the reins of the company. Just after the transition period, disputes arose between Wadhwa and investors over several issues and lawsuits and countersuits were eventually filed by both parties. According to Wadhwa, the settlement agreement now being finalized will end all of the disputes and lawsuits between all parties involved.
Since he stepped down as CEO, Wadhwa has started writing a column for BusinessWeek and also has been a financial backer of some “Bollywood” motion picture films in India.
At the RTP-TV event, Wadhwa added that he was looking forward to spending more time with his family and that he was eager to finish the Relativity discussions and close that chapter in his life.
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