Amazon has gone up in arms on Monday, filing a lawsuit against its former employee, Arthur Valdez, for defecting to the e-commerce giant's competitor, Target. According to Amazon, Valdez, who used to work in the company' supply chain and logistics division as an executive officer, is violating a non-competition agreement that the former employee signed in 2012.
Valdez was one of Amazon's seasoned employees. Being with the company for 16 years, the veteran executive saw Amazon's rise and domination of the e-commerce trade. Thus, his defection to Target has affected Amazon deeply.
In its statement, Amazon announced that Valdez, being a tenured executive, was privy to the company's closely-guarded secrets and operational techniques. Apart from this, several important strategies that Amazon has developed over the years were conceived with the help of the former employee.
"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," Amazon's lawsuit read.
What really sounded the alarm bells for Amazon, however, was Valdez's own résumé and Target's subsequent press release after hiring the ex-Amazon executive.
"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 lawsuit added.
With Valdez scheduled to begin his employment with Target on March 28, the e-commerce giant is pulling out all stops. Indeed, with the company's reaction, it does seem very likely that Amazon fears what Valdez might reveal to Target. After all, Target has remained as one of Amazon's most persistent rivals in the shipping and delivery market.
Target, however, has brushed off the lawsuit, with spokesperson Molly Snyder stating that Amazon's efforts would ultimately go to waste.
"We have taken significant precautions to ensure that any proprietary information remains confidential and we believe this suit is without merit," she said.