Much water has flowed under the bridge and Apple and electric car battery maker A123 Systems have finally decided to settle their ongoing dispute pertaining to employee poaching.

For the unfamiliar, earlier in February 2015, A123 filed a lawsuit against Apple in a Massachusetts Federal court, accusing the company of poaching five of its employees (including the former head of the company's venture technology division) who were responsible for A123 Systems' important projects. The employees violated their contract of agreeing not to work with a rival within a year of quitting A123 Systems.

However, Apple denied the allegations that it poached A123 Systems' employees to help build its own battery unit. In March, Apple had requested the court to dismiss the lawsuit, saying that A123 System's claims were speculative.

However, the two companies have now settled the feud, according to court papers filed by A123 Systems on Monday, May 11.

The filing appeals to the Massachusetts District Court to discharge the case as the aggrieved parties have reached a settlement. The two companies have come to an agreement and are reportedly working on the details of the settlement.

"The parties have reached an agreement, signed a term sheet, and are in the process of drafting a final settlement agreement," revealed A123 Systems' legal counsel in a filing at a federal court in Boston.

However, the filing does not disclose the battery maker's terms of settlement with Apple, and its staff have not been disclosed. The documents, however, do reveal that Apple and A123 Systems started discussions for a settlement in March.

The lawsuit also gives a glimpse into Apple's clandestine efforts to develop a new product, which has been rumored for long — an electric car. Experts have been debating for a while that Apple is gearing up to venture into the automotive sector and has an electric car in development, which could rival offerings from the likes of Tesla. Dubbed "Project Titan," the company's electric car project is said to be in its early stages.

Reports suggest that Apple is eyeing a 2020 launch for its electric car.

Photo: Andrew | Flickr