Amazon Sues Exec Set to Join Target


Photo By: Associated Press

Amazon.com sued its seasoned logistics executive nearly a month after Target hired him, saying he has violated a non-compete clause that prohibits him from joining a rival for at least 18 months.

The suit, which Amazon filed last week, alleges that Arthur Valdez, hired as Target's new chief supply chain and logistics officer, already has shared trade secrets during the interview process. And Amazon says Valdez would be required to disclose Amazon's confidential information in his position at Target. Valdez's duties will include overseeing planning, distribution and transportation.

Valdez, a 16-year-veteran at Amazon.com, was most recently vice president of operations, which handled Amazon.com's international supply chain expansion.

"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 said in the suit, filed in King County, Wash.

Valdez signed the non-compete clause in 2012, according to the suit.

Valdez is expected to start his new job next week.

"We have taken significant precautions to ensure that any proprietary information remains confidential and we believe this suit is without merit," Target spokeswoman Molly Snyder said in an email today to the Associated Press. "However, as this is pending litigation, we are not going to comment further at this time."

Amazon.com's spokeswoman Kelly Cheeseman declined to comment.

Target is pushing to close the gap between its e-commerce and store operations. It's been a big challenge for Target and other major retailers as consumers increasingly shop online.

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