Smith & Nephew (FTSE:SN, NYSE:SNN) and a distributor for rival Biomet in Texas agreed to drop a lawsuit the British medical device company filed last year, accusing Central Texas Orthopedic Products of poaching1 of its sales reps.

Smith & Nephew sued Central Texas in August 2012, alleging that it knew Nick Garrett was barred from working there due to a non-competition agreement when it hired Garrett as a sales rep in March 2012, according to court documents.

Garrett had worked at Smith & Nephew since June 2010, according to the documents. In May 2012, SNN sent a cease & desist letter to Garrett and Biomet, then filed the lawsuit.

"Despite being fully aware of the S&N’s contractual relationship with Garrett, Central Texas tortiously interfered with and caused Garrett to breach his obligations to S&N. Central Texas subsequently employed Garrett as a sales representative, in direct contravention of Garrett’s obligations to S&N, to sell orthopaedic products in the territory covered by the Agreement with S&N and solicit business from S&N’s customers," according to the documents.

Smith & Nephew wanted Judge Lea Yeakel of the U.S. District Court for Western Texas to award $1 million in compensatory damages. But Yeakel dismissed the case July 25 of this year, according to the documents.

Smith & Nephew and Central Texas "hereby stipulate and agree that all claims which were could have been asserted in this action between these parties are hereby dismissed, with prejudice, each party to bear their own costs," according to the documents.