This week, Reuters reported Walmart filed a lawsuit with Delaware’s Court of Chancery to keep a former top tax executive from joining Amazon’s team. Walmart claims that the former Senior Vice President, Chief Tax Officer Lisa Wadlin’s departure violates a non-compete agreement and threatens the possibility of spilling its secrets to one of its biggest rivals.
“We believe Ms. Wadlin’s acceptance of a job with Amazon will violate her non-compete clause,” said Walmart Senior Director of National Media Relations Randy Hargrove, who also noted that many Walmart senior executives agree to forego working for competitors with revenue in excess of $7 billion for two years after leaving the company.
According to Reuters, while Wadlin told Walmart in January that she would be resigning from her position, she did not disclose that she would be joining Amazon as a Vice President of Tax and Tax Policy until separation papers were signed on May 15.
Specifically, Walmart raised concern that this move will tip off Amazon to strategic plans like possible merger targets, and give away whatever edge it has in those plans.
Will the court find favor with Walmart? Deli Market News will report as the two retailers continue to go head-to-head.