In what is being touted as a big win for the startup economy, Automatic Data Processing Inc., a leading payroll company, agreed to drop its defamation suit against Zenefits, a rapidly-growing Silicon Valley competitor. A federal judge dismissed the case with prejudice.
"It seems clear to me that ADP has no claim for defamation," said U.S. District Judge Vince Chhabria, the Wall Street Journal reports.
The lawsuit was borne out of a dispute sparked by ADP's decision to block Zenefits from accessing payroll data for hundreds of mutual clients. Although the two companies are competitors, they also share hundreds of clients that use ADP's payroll processing program along with Zenefits' free employee benefits tools.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
