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iGoDigital founder drops lawsuit over acquisition payout

October 7, 2013

The founder of iGoDigital has dropped a federal lawsuit that stemmed from the tech company’s $21 million buyout last year.

Eric Tobias, who launched the Indianapolis software firm in 2004, sued former contractor Kevin Honan in August to prevent Honan from claiming a larger share of the company than Tobias said he was entitled to.

The dispute involved the legal structure of the business, which included iGoDigital Inc. and its larger parent, iGoDigital Holdings Inc.

A contract agreement gave Honan a 25-percent stake in iGoDigital if the company was acquired. That happened in October 2012 when ExactTarget bought the firm for $21 million—a deal that helped position ExactTarget for its own $2.5 billion buyout by Salesforce.com in July.

After the deal, Honan claimed he owned 25 percent of the larger holding company. Tobias said Honan’s stake was only in the smaller subsidiary, which meant less money for Honan.

Tobias’ lawsuit intended to stop Honan from claiming a larger share. The suit did not seek any damages.

In an Oct. 2 filing, Tobias requested a dismissal of his lawsuit. Records did not indicate why he did so or whether there was a settlement.

Attempts to reach Tobias’ attorney before IBJ deadline were unsuccessful.

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