Heavy-duty component manufacturer, Stemco, has settled a lawsuit with competitor RevHD and its owners over uncompetitive practices.

Stemco alleged that RevHD owners Matt Stovall and Brian Beathard used confidential and proprietary knowledge gained from their previous experience as employees at Stemco to create products that competed directly with the company. As part of the settlement, RevHD, Stovall and Beathard must cease all distribution, sale and marketing of products competing with Stemco.

They must return or destroy confidential and proprietary information from Stemco and return or destroy products and marketing materials. They also have to send all packaging, collateral and advertising material pertinent to RevHD products that directly compete with Stemco.

Additionally, RevHD, Stovall and Beathard must pay an undisclosed sum to Stemco and notify the industry and RevHD’s customer base of the cessation of business.