IT staffing firm TSR Inc. (NASDAQ: TSRI) and former CEO Christopher Hughes settled a lawsuit between the two with the company agreeing to pay Hughes $705,000, according to a filing with the US Securities and Exchange Commission.

“We believed it was in the best interests of the company to resolve the matter so TSR could move forward with its business,” TSR Chairman Bradley Tirpak said. “We were hopeful that mediation would lead to an agreement and are pleased that it has. The settlement eliminates the risk of costly litigation and allows us to focus on continuing to grow the company.” 

The company wished Hughes success in his future ventures and thanked him for his service to the company.

“I look forward to the next venture in my career journey,” Hughes said. “I am in active discussions on several fronts: Pursuing a strategic company acquisition in the IT arena; joining a private equity firm; and already entertaining several senior-level positions in the IT staffing realm.”

Hughes had sued TSR in March 2020 alleging breach of contract and breach of duty of good faith and fair dealing, saying the company terminated him in order to avoid paying severance. Hughes had worked for the company for 34 years; his father had started the firm in 1969. TSR had filed counterclaims.