Compaq said Monday that it reached a settlement with two defendants in a lawsuit filed last week accusing a South Carolina company and three individuals of defrauding Compaq of more than $20 million. Compaq said it settled with Harry Martin and Shafiq Ahmad, principals of Virginia-based Millennium Technology Group. Compaq, which did not disclose the terms of the settlement, said it is still pursuing legal action against South Carolina-based Creative Resources Group and its president, Stephen Pridemore.
According to Compaq's lawsuit, Pridemore and CRGI conspired to defraud Compaq into paying rebates and special marketing support funds by claiming they had large federal government contracts that required significant rebates and discounts from Compaq. Compaq maintains that no such contracts existed and that the defendants sold the computer products through a broker instead.