Tech America, ITI settle $5M breach of contract lawsuit

Friday - 5/2/2014, 5:24pm EDT

Two of the major technology organizations that represent federal contractors called a truce.

TechAmerica and the IT Industry Council (ITI) announced they had settled counter lawsuits.

"TechAmerica's top priority is always the success of our members and the larger U.S. technology industry, and all actions we take are to serve that goal, including the settlement between ITI and TechAmerica," said Shawn Osborne, president and CEO of TechAmerica, in an email statement. "This resolution is in the best interests of our members."

ITI President and CEO Dean Garfield said, "ITI is committed to focusing on the vibrancy of the technology sector and the dynamic future that ICT innovation brings to consumers around the world. To ensure continued success in achieving this vision, ITI and TechAmerica have agreed to the resolution of pending litigation between them and have entered into a confidential agreement to resolve all claims, without any admission of wrongdoing."

Neither organization would offer further details about the settlement. An ITI spokesperson said they would not offer any comment beyond what they provided.

The decision to settle came after TechAmerica's lawsuit against three former executives and ITI received the go-ahead from the judge to move into the discovery phase in February.

The case started in November when TechAmerica filed a $5 million lawsuit against ITI and Trey Hodgkins, Carol Henton and Pam Walker after the three former TechAmerica executives left the association along with Erica McCann, who is not included in the lawsuit, to start the IT Alliance for Public Sector (ITAPS), a division of ITI.

TechAmerica alleged Hodgkins, Henton and Walker took proprietary information and violated confidentiality agreements.

ITI filed a motion to dismiss the case in December claiming TechAmerica's lawsuit was "fatally deficient" and "nebulous."

ITAPS has slowly grown over the last few months, counting 19 companies as members, including Amazon Web Services, Intel, IBM, Microsoft and Oracle.

TechAmerica, meanwhile, is trying to rebound after several member companies and the public policy staff exited. It hired Mike Hettinger in December to lead its public policy shop and several other executives to fill other open positions.

RELATED STORIES:

TechAmerica lawsuit against ITI Council to move forward

TechAmerica files $5 million lawsuit against ITI, three former execs

ITI seeks dismissal of TechAmerica lawsuit, calling claims 'fatally flawed'

ITI becomes a player in acquisition after TechAmerica exodus

Hettinger chosen to lead TechAmerica's public sector shop