Newspaper article Sarasota Herald Tribune

Lawsuit against CEO Is Settled

Newspaper article Sarasota Herald Tribune

Lawsuit against CEO Is Settled

Article excerpt

WHISTLE-BLOWER CASE: Ex-IntegraClick executive drops his allegations


After making claims under the state's whistle-blower act against IntegraClick CEO John Lemp, the company's onetime top technology officer this week agreed to a confidential, out-of-court settlement with his former employer.

At the heart of Robert McAfee's lawsuit was the claim that he refused to destroy documents for Lemp in December, when Lemp became worried he would be asked for incriminating information as part of an inquiry by the Federal Trade Commission.

McAfee, IntegraClick's former technology director, was fired shortly after his refusal. In his lawsuit, he sought back pay and damages, records show.

"McAfee objected to and refused to participate in, activities, policies and practices of IntegraClick which were in violation of a law, rule or regulation" the lawsuit stated.

Terms of the settlement were not disclosed in court documents. A "joint stipulation" refers to the settlement but is not contained in the court record.

"After an initial assessment of the facts, both McAfee and IntegraClick have agreed to drop all claims and any potential counterclaims in this case," Cara Daves, IntegraClick's vice president of research and communications, said on Friday.

"IntegraClick stands behind its integrity as a company," Daves added. "Due to the nature of this dismissal, no other details can be disclosed."

McAfee's attorney, Ryan Barrack, declined to comment.

Judge Becky Titus signed a final order dismissing the civil suit with prejudice on Tuesday. Dismissing a case with prejudice means it is over and cannot be brought back to the same court again.

IntegraClick's status regarding any pending investigation by the Federal Trade Commission is unknown.

In recent months, the FTC has increased its focus on affiliate marketing, agency spokesman Peter Kaplan said Friday.

The agency does not comment on whether it is investigating an individual company.

Based in Sarasota and founded by Lemp, IntegraClick is a pioneer in a type of Internet sales known as cost-per-action marketing.

Through a subsidiary, Clickbooth, IntegraClick encourages thousands of other website owners, referred to as affiliates, to copy and paste advertising material into their own sites. …

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