Plus SMS Holdings' founder Garry Donoghue is taking the mobile phone technology company to court.
Mr Donoghue has started legal proceedings in the High Court at Auckland, The New Zealand Herald reported today.
His lawyer, John Henderson, said the proceedings alleged Plus SMS had breached confidentiality obligations under a settlement agreement.
In September 2006 Mr Donoghue and chairman Jim Bracknell resigned, and a settlement deed was reached.
The stockmarket was told the company had made a number of unrealistic statements.
In the court action, Mr Donogue was seeking unspecified damages, Mr Henderson said.
"He's not looking for a cheque, in other words what he wants is people to stop saying nasty things about him."
