Novus Marketing Inc., Minneapolis, has reached a settlement with its former executive Monica Smith, Jeffrey M. Schlossberg, Smith's attorney, confirmed to DIRECT Newsline yesterday. A temporary restraining order, restricting the scope of Smith's work in the list industry was also lifted.
In its lawsuit against Smith, who left her job as vice president of Novus' list management division in March, Novus alleged that Smith would "inevitably disclose" Novus trade secrets to competitors. Smith had denied the charges.
The settlement restricts Smith from working for the following list management companies until September 2000: Acxiom/Direct Media Inc., Stamford, CT; American List Counsel, Princeton, NJ; List Services Corp., Bethel, CT; and Millard Group Inc., Peterborough, NH, according to attorneys for both Novus and Smith.
Under the settlement, Smith has also agreed not to work for any current Novus Marketing list management clients through March 4, 2001 (the anniversary of Smith's departure from Novus). And, Smith will continue to be bound by two confidentiality agreements she signed, which protect Novus proprietary information such as internal operations of Novus and Novus Marketing's computer-modeling program.
"We got 18 months and four competitors and I think from Novus' standpoint that's a terrific result," said Thomas E. Propson of Meagher & Geer, Minneapolis, which represents Novus.
"Obviously, a settlement is a compromise and everybody gives something up," said Schlossberg, an attorney at Ruskin, Moscou, Evans & Faltischeck PC, Mineola, NY. "You have to look at the big picture." In a press release he affirmed, "The agreed-upon terms are quite limited in scope and allow Ms. Smith to focus her attention on growing her business."
Smith had founded Marketsmith Inc., a Milford, NJ, strategic marketing company, after leaving Novus.
Calling it a "fair settlement from both parties' perspectives," Propson added, "I think that it protects the integrity of Novus' trade secrets for a reasonable period of time ... and yet allows Ms. Smith to move on with her life and Marketsmith to begin working."
The suit, Novus Marketing Inc. NNG LP, v. Monica C. Smith, was originally filed in June in Minnesota state court, and was removed by Smith to federal court in July.
