VerdictSearch New York Reporter
In this decision for the plaintiff the judge enjoined Linerode from having business dealings with her former Gore clients until Sept. 26, 2008. She was also barred from disclosing, misappropriating or using in any manner any of Gore's confidential information or trade secrets; disparaging or besmirching the reputation or character of Gore or any of its employees, products or services, and from soliciting, diverting, or
hiring or attempting to solicit, divert, or hire away, any person employed by Gore and encouraging or inducing anyone to leave Gore's employ. The judge also ordered the parties to bear their own costs and attorneys' fees. Linerode consented to the order.
On Aug. 6, 2007, plaintiff W.L. Gore & Associates Inc., a Delaware corporation that manufactures and sells vascular prosthetic devices, informed Susan Linerode, that her employment would likely be terminated. Linerode, a Gore salesperson, had allegedly engaged in highly inappropriate conduct in the workplace. She was
retained at full salary for several more weeks so that she would assist in the transition of her accounts to other salespeople. During this transition period, while still a Gore employee, Linerode found other employment with Endologix Inc., a Gore competitor. Using a Gore company e-mail account, she was alleged to have launched an aggressive campaign to smear Gore's reputation, divert Gore's customers and employees, and compete with Gore. When communicating with plaintiff's customers, she informed them that she was resigning from the company and encouraged them to purchase products from her new employer.
Gore sued Linerode for disloyalty and breach of obligations.
When Linerode was first hired by Gore, she had signed an agreement that prohibited her from disclosing confidential information and from competing with Gore for 12 months after the termination of her employment.
Before the suit was filed, Endologix claimed that the agreement was not enforceable because as a California corporation, it was not subject to New York law.
United States District Court, N.D. New York
W.L. Gore & Associates, Inc., a Delaware corporation v. Susan Linerode
No. 07-cv-1106
DATE OF VERDICT/SETTLEMENT: November 07, 2007
