A former Amazon Executive was sued by its past employer after he joined Target Corp. According to Amazon, the veteran logistics executive violated a non-competition agreement he signed in the contract. Amazon fears that he may reveal the company's trade secrets to his new employer.
Target hired the former Amazon executive, Arthur Valdez, as its chief supply chain and logistics officer. He worked in Amazon for 16 years as a senior executive in the Seattle-based retailer's operations department managing its international supply chain expansion. Amazon is a trailblazer in the retail e-commerce business after it led the business' speedy delivery and aggressive pricing, Reuters reports. The Amazon executive was hired by Target in February and called him a seasoned supply chain leader.
"Mr. Valdez's new position with a key Amazon competitor will involve the disclosure and use of Amazon's confidential and proprietary information to Amazon's detriment and Target's advantage in a core area of competition between the companies: the cost-effective and rapid movement of goods in the most efficient way possible for retail customers," the company says in its suit.
Amazon alleged that the former Amazon executive is not only knowledgeable about the company's top secrets and operational methods. The Seattle-based electronic commerce company also claimed that he helped form them, according to ZD Net. The former Amazon executive signed a non-competition agreement in 1999 and in 2012 according to the lawsuit. Amazon asserted in the filing that Valdez told Target about his active involvement in Amazon's logistics, training and expertise.
"While interviewing with Target's most senior executives, Mr. Valdez referenced not only core aspects of Amazon's confidential information, training and expertise, but also the title and topics of a key analysis and strategy meeting Mr. Valdez was contributing to and participating in at Amazon," the company says in its suit. "Mr. Valdez's behavior at Target with respect to Amazon's confidential information before being hired there highlights the injury to Amazon from Mr. Valdez's work for Target if he works there."
Amazon alleged that the former Amazon executive signed a contract stating that he would not share any confidential information on Amazon's future plans, Star Tribune reported. According to the suit, Valdez participated in an executive level review last year. He's joined the review in Amazon's different divisions, including Amazon Fresh, the company's grocery service, and Prime Now. All the divisions offer one to two-hour deliveries.
The former Amazon executive will be joining Target on March 28. The e-commerce giant claimed that they tried to settle the dispute out of court with the former Amazon executive. However, they believe that they need to act fast before anything could happen. A Target spokesperson said that the lawsuit has no merits.
