Ten-X, LLC (formerly known as Auction.com) and CREXi, Inc. have entered into a settlement agreement concerning a complaint filed by Ten-X in California Superior Court against CREXi, Inc. and its founder Michael DeGiorgio in April 2016, which alleged claims for breach of contract and misappropriation of trade secrets. In the settlement, CREXi has agreed to pay $1.6 million. In addition, CREXi will be subject to ongoing restrictions, including a prohibition against using Ten-X property.
Regarding the settled litigation, CREXi's CEO Michael DeGiorgio stated: "We apologize to Ten-X for the actions which led to this lawsuit. I regret my conduct at the time I departed Ten-X and believe that the settlement is a fair resolution. With the litigation now settled, CREXi looks forward to competing in the commercial real estate marketplace on a level playing field."
Ten-X's CEO Tim Morse stated: "We are pleased that this litigation has been brought to a successful resolution by our legal team. Ten-X is proud of its history of bringing innovation to the commercial real estate marketplace and of our employees who expend tremendous effort developing products and services for our clients. We hope that the outcome of this matter – both the injunction we obtained in the Fall and the ultimate settlement of the case – sends a message that Ten-X will vigorously protect its rights when necessary."