Fleet Management

XPO Sues YRC Freight for Poaching Executives

February 08, 2016

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Image via XPO Logistics
Image via XPO Logistics

XPO Logistics Freight is suing rival less-than-truckload carrier YRC Freight for allegedly hiring employees from the company  to obtain important trade secrets, according to a report posted by DC Velocity.

The lawsuit aims to block YRC Freight from employing two former XPO executives and five other individuals for at least a year and to return any secrets or information that the company may have acquired from those hirings. When XPO bought Con-way Freight for $3 billion last year, YRC hired away two Con-way executives, Paul Lorensen and Chet Richardson, only a few days after the acquisition.

During the acquisition, the two executives in the suit were made aware of XPO’s plans to move into the LTL space with the Con-way acquisition. Richardson in particular, said XPO, had access to and knowledge of certain internal XPO software that focused on routing XPO Freight more efficiently than competitors.

According to the The Wall Street Journal, the suit alleges that the two executives had knowledge of the details of XPO’s acquisition and plan to compete with YRC Freight. In addition, it claims they intentionally delayed accepting jobs at YRC in order to obtain trade secrets. XPO also alleges that the poached employees were offered special bonuses and commissions for each XPO Freight customer they brought to YRC.

The five other employees indicated in the suit were sales and operations personnel who XPO said also had access to confidential information.

Comments

  1. 1. cjacobs [ February 09, 2016 @ 04:27AM ]

    Who wrote and edited this article? The fiuve other employees, Really!!!

  2. 2. jwhite [ February 09, 2016 @ 05:21AM ]

    yrc should hire cjacobs

  3. 3. BarbRRB [ February 09, 2016 @ 05:29AM ]

    I assume that there is enough 'proof' on the books for this lawsuit to be filed. Just goes to show you how cut throat Corporations can be. They have to keep that vacation home at the beach and the new luxury vehicle's for the spouse and kids to drive.

  4. 4. jworld [ February 09, 2016 @ 06:17AM ]

    this is silly. if they signed a no compete clause or trade trust agreement and violated these contracts, then there is an issue. otherwise- XPO needs to go back to work moving freight. LTL is a broken model anyway, thats why the LTL carriers are diversifying into truckload freight.

  5. 5. One horse operation [ February 09, 2016 @ 06:37AM ]

    I hauled a load for Conways brokerage a while back. It took me 5 months to get paid. These big outfits are all thiefs trying to get every last piece of freight and run the next guy out of business . They will tell you it's just business , I call it greed . Hope they enjoy each other's company in court

  6. 6. SLM [ February 09, 2016 @ 07:34AM ]

    XPO should just wait a year and then they can hire Lorenson and Richardson back at higher salaries and with bigger bonuses to get YRCs secrets. Those two and the lawyers will come out great in this battle. Or maybe XPO should just buy YRC. I hope the execs didn't sign a non complete.

  7. 7. Steve [ February 09, 2016 @ 09:24AM ]

    These huge carriers go into shippers and gobble up all the freight so the owner operator has no chance of getting any. Then they turn around and sub it out to us at a rate that hardly covers the fuel. I for one don't care what they do to each other. They're all CROOKS anyway!

 

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