Remember the curious case of Noah Kravitz, the tech blogger who was sued by his former employer for his Twitter followers — in a lawsuit that set the worth of a Twitter follower at $2.50 each?

If so, you can stop being outraged about it. Kravitz and the former employer, tech site PhoneDog, have settled the case after a year and a half of tough mediation. And although no one is offering details about the settlement, it sounds like no money is changing hands for Twitter followers.

PhoneDog, a mobile reviews site, currently has 27,000 followers on Twitter. When Kravitz left the site in October 2010, he took his @phonedog_noah account and turned it into @noahkravitz, which now has 23,000 followers. He claims to have done so with the site's blessing (and court documents showed evidence of an agreement where Kravitz was asked to send occasional PhoneDog tweets from the account).

But a dispute over back pay erupted into a lawsuit where PhoneDog wanted compensation for all followers Kravitz acquired while working for the company. The suit became a cause célèbre as it was the first to put a price tag on the worth of a Twitter user, and tackled the question of who owns a professional Twitter account started during a period of employment. Kravitz will retain custody of @noahkravitz.

"I'm very glad to have worked this out between us," Kravitz said in a statement. "If anything good has come of this, I hope it's that other employers and employees can recognize the importance of social media ... good contracts and specific work agreements are important, and the responsibility for constructing them lies with both parties."

Reached by Mashable, Kravitz could not comment further on the settlement — only on his mood. "It's a good day," he said. "The sun is out."

Have you reached any social media agreements with your employers or employees? Share them in the comments.