XPO Logistics is suing YRC Worldwide Inc. for allegedly hiring its former executive employees in an attempt to steal trade secrets.
The lawsuit claims that YRC wooed two key executives away from XPO with informal job offers and then delayed their formal hiring long enough that the executives were able to learn fresh intelligence by attending high-level meetings. They back up their claim by noting that both executives resigned without notice on November 9 and immediately began working for YRC.
XPO has demanded the return of all trade secrets and privileged information. They also want to prevent YRC from employing any of the former executives for at least one year.
The allegedly poached executives were Con-way employees who were absorbed into XPO when company acquired Con-way in October for $3 billion.
As of Con-way’s October acquisition, it was the number two less-than-truckload service in the U.S. YRC is currently number three in that market.
Sources:
The Wall Street Journal
The Kansas City Star
DC Velocity