ADP, Zenefits settle legal skirmish

ADP dropped its lawsuit against Zenefits as part of a broader settlement.

ADP on Tuesday dropped its lawsuit against rival Zenefits as part of a broader settlement.

The end of the legal battle comes after a multimonth battle over access to data. ADP argued that Zenefits' service was insecure and cut off integration points. Zenefits, which provides HR tools, filed a defamation lawsuit of its own against ADP and urged the U.S. District Court for the Northern District of California to dismiss the case.

Zenefits had been set up within ADP to automate payroll administration.

As part of the settlement ADP ended its lawsuit and both parties agreed to drop any legal claims against each other. The two companies also had a joint statement indicating that ADP has no reason to believe Zenefits has security issues. In return, Zenefits said that it has no reason to believe ADP is unethical.

ADP and Zenefits were in a settlement conference that was ordered on Sept. 24.

According to the docket, the two parties settled their legal spat in a proceeding that lasted more than three hours.

Joint customers are likely to see connections between the two companies improve. "A few small features remain disabled (due to ADP's actions), but Zenefits is still able to offer a vast majority of our services to our shared customers and bring efficiency and HR automation to their business. Zenefits is working closely with ADP and continues to connect and serve hundreds of ADP customers each month and will continue to do so," said a spokesman for Zenefits.

Previously: Zenefits vs. ADP: The points to ponder