Apple, A123 Close to Settling Battery Hiring Lawsuit

Apple and electric battery maker A123 Systems are close to settling a legal dispute over claims that the smartphone and computer maker, which is also looking into building an electric vehicle, poached A123 employees to build a large-scale battery unit.

A123, which makes batteries that are used in electric cars, sued Apple in February in Massachusetts federal court, claiming that around June 2014 Apple began aggressively poaching A123 engineers tasked with leading some of the company's most critical projects. Apple denied the claims.

The Waltham, Mass.-based battery maker disclosed in court papers Monday that the parties have reached an agreement to settle the case and are working out the final details.

Neither company immediately responded to requests for comment. Lawyers for Apple did not immediately respond, while A123 lawyer Michael Rosen declined to comment.

A123 Systems is a pioneering industrial lithium-ion battery maker, which was backed by a $249 million US government grant. It filed for bankruptcy in 2012 and has been selling off assets.

The case in U.S. District Court, District of Massachusetts is A123 Systems LLC vs. Apple Inc et al., 15-10438.

Apple in March had asked for the civil lawsuit by A123 systems to be dismissed, saying the firm's claims were too speculative to proceed, according to a court filing.

Prior to its request for dismissal, Apple had asked for an extension to respond to the lawsuit because the two companies were exploring a settlement. The latest filing did not provide any update on those talks.

Edited by NDTV staff from original story by Reuters