Apple Inc. (NASDAQ:AAPL) In Court Filing To Resolve Lawsuit Filed By A123 Systems Inc.

Apple Inc. (NASDAQ:AAPL) has today decided to begin discussions regarding settlement in a court case brought against it by A123 Systems Inc. The former manufacturer of electronic motorcar batteries has claimed that the maker of the renowned iPhone has been poaching its best engineers.

Have analyst identified a strong buy signal for AAPL?

The breach of contract lawsuit was filed in February by A123 against five former employees and Apple Inc. (NASDAQ:AAPL). In its claim, A123 Systems accuses Apple of using these engineers to construct a large-scale battery unit. A123 Systems is a leading industrial lithium-ion battery maker and was even backed by a US government grant totaling $249 million. The company once specialized in huge batteries that can be used in large machines including cars. However, the company filed for bankruptcy in 2012 and has subsequently been attempting to sell its assets.

 The Innovative and technological software giant is currently looking at how to make an electronic car and as such is currently engaged in hiring engineers. As a result, the company has placed emphasis on recruiting quality engineers, with great expertise in automobile systems. This is a move representing a drastic shift in operations for the maker of the iPhone and iPad.

New ventures, however, are not new to Apple as it often researches numerous projects that are subsequently discarded. As a result mainly sticking to its niche; being expertise in electronic and mobile devices. According to A123’s lawsuit, its engineers who have been given the responsibility of leading the company’s most vital projects have been subjects to aggressive poaching since June of last year.

Apple Inc. (NASDAQ:AAPL)’s court filing was made on March 4, and has a federal Judge in Massachusetts. This was made for a request to grant an extension of time in order to respond to the lawsuit brought against it by A123. The reason given for the court filing was because “they are exploring potential resolution.”

About the Author

Sally joined the US Markets Daily News Team in April 2011 as a Multimedia Journalist.

Leave A Response