Back9Network has withdrawn its lawsuit against former CEO James Bosworth and the matter will move to arbitration, according to court documents filed Thursday.
The withdrawal means the proceedings will be private. Bosworth’s attorney has previously asked the judge to send the matter to arbitration, stating that “the debate about the direction of the company belongs in the boardroom – not a public courtroom.”
Back9 alleged that Bosworth had openly disparaged his former employer to investors and others, and also shared the company’s private financial information.
Bosworth is Back9’s largest shareholder, his attorney Paul H. McConnell said.
McConnell said in a statement Thursday that he is happy the suit has been withdrawn.
“We are delighted that Back9 has agreed to resolve our differences through arbitration. This is a positive result for both Mr. Bosworth and Back9,” he said.
Reached by phone Friday morning, Back9’s attorney Joshua Berman said: “Although the company does not believe Mr. Bosworth has any legal right to compel arbitration, we’ve agreed to resolve our dispute with Mr. Bosworth before the American Arbitration Association, which is a reputable, efficient and binding forum.”
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