The lawsuit and countersuit between healthcare information technology systems developer Medsphere Systems Corp., Aliso Viejo, Calif., and its two co-founders, Scott and Steve Shreeve, have been settled, ending an bizarre, 15-month legal battle in which a company that bills itself as a purveyor of open-source software sued its own officers for releasing software to the open-source community.
It was done yesterday, and we announced it this morning, said Medsphere President and Chief Executive Officer Michael Doyle in a telephone interview today about the settlement. Its completely over, said Doyle, adding the Shreeve brothers will have no further role with the company.
Neither Doyle, who was named president and CEO on Oct. 1, nor Scott Shreeve, an emergency room physician and co-founder of the company who also was contacted for this story, would comment on the terms of the settlement, including whether it included noncompete agreements with the Shreeves.
We wish Michael Doyle every success in accomplishing the vision that was set for Medsphere six years ago, and we hope Medsphere can make it happen, Scott Shreeve said.
On June 26, 2006, Medsphere filed a $50 million, 12-count lawsuit (Premium registration required) against the Shreeves and 20 other unnamed defendants. The allegations included misappropriation of trade secrets, breach of contract and breach of duty of loyalty. In November, the Shreeves filed a countersuit against the company, its then-CEO and board chairman Kenneth Kizer and several other board members.
At issue was the posting of Medsphere computer code to SourceForge.net, a popular Web-based platform for open-source development projects. At the time, Steve Shreeve was a member of the board of directors and was the companys chief technology officer. Scott Shreeve was its chief medical officer. -- by Joseph Conn
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