Rapt founders settle suit against VCs

Two of the three founders of business software company Rapt Inc. have settled their suit against Accel Partners, Levensohn Venture Partners and Rapt itself, according to court documents obtained by PE Week.

The parties in the dispute were scheduled to have a “complex case status conference” this morning (Sept. 15). The court document says: “The parties to this action have reached a settlement agreement. The parties expect to file a dismissal within 45 days and respectfully request that all conferences … be taken off calendar.” Details of the settlement were not disclosed.

A partner at Levensohn declined to comment. PE Week contacted Accel, Rapt and attorneys for both the plaintiffs and defendants, but none was available as of 4:30 p.m. today. In all cases, the individuals were said to be “in a meeting.”

The suit was filed by Adam Galper and Paul Dagum, two of three Sun Microsystems vets who founded Rapt along with current Rapt CEO Tom Chavez in April 1998. Chavez was named as a defendant alongside Accel, Levensohn, Rapt and individual investors Arthur Patterson of Accel and Christopher “Kip” Sheeline of Levensohn. Galper and Dagum claimed breach of fiduciary duty and fraud in their complaint, which was filed in San Mateo Superior Court in August.

For details of the case, see PE Week’s previous story.