About a month ago we heard that Martin Eberhard had decided to drop his defamation and breach of contract lawsuit against Elon Musk and Tesla Motors. Now comes word that Eberhard and the defendants have actually reached a settlement. Given the ruling of the judge in the case that the suit could proceed, apart from the claim that Musk was falsely claiming a role as co-founder, the settlement should not come as a surprise.

With Tesla having some good news in recent months thanks to DOE loans and an investment from Daimler, the company would surely not want to keep this one hanging out there. As expected, no one is talking about any details of the settlement. However, in a statement that has not yet been released in full, Eberhard reportedly says, "As co-founder of the company, Elon's contributions to Tesla have been extraordinary." In return for whatever Eberhard got, he probably had to make nice with Musk. Interestingly, Eberhard's TeslaFounders blog appears to have been closed.

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[Source: LegalPad]