Borland and Microsoft announced today that they have reached a settlement in the lawsuit Borland filed earlier this year in which they accused Microsoft of recruiting and hiring Borland technical talent in an intentional effort to harm financially-troubled Borland. The suit charged that Microsoft was lured 34 key employees away from Borland by offering ridiculously large salaries. According to Borland, $1 million signing bonuses were offered in several cases. Terms of the settlement are confidential.

"We believe this settlement is in the best interest of both our companies," Borland and Microsoft officials said in a statement. "This settlement resolves any legal questions surrounding the lawsuit and allows both companies to move forward."