SINGAPORE - Darco Water Technologies, a mainboard-listed provider of water and wastewater system solutions, said on Wednesday it has settled a lawsuit against its former employees.
Darco had sued former employees Grober Industrial Services and KIJ Ultra Supreme Filtration for breach of duties and conspiracy to divert Darco's business contracts during and after their employment.
Under the settlement agreement, the legal ownership and all current business of Grober Industrial Services will be transferred to Darco.
This will "enable the company to recover assets that (have) been part of the group's business under its ordinary course of business", Darco said in a statement.
The total value of the settlement is estimated at 3 million ringgit (S$1.2 million). It is expected to have a positive impact on Darco's financial results for the 2014 financial year.
Darco's chief executive Thye Kim Meng said: "While it is not wrong for an employee to leave our company after fulfilling all the employee's legal obligations, it is an offence to participate secretly in unlawful acts while still under the employment of our Company."
He added: "We are pleased to be able to recover assets that are part of our business and this settlement is good news for all our customers, shareholders and other stakeholders who have placed their trust with us."