In Bimbo Bakeries USA, Inc. v. Botticella, No. 10-0194 (E.D. Pa. Feb. 9, 2010), the United States District Court for the Eastern District of Pennsylvania enjoined a Bimbo Bakeries executive from taking a position with Hostess Brands, Inc., a direct competitor, holding that it was “substantially likely” that he would disclose Bimbo Bakeries’ trade secrets. As the Vice President of Operations for Bimbo Bakeries, Mr. Botticella had extensive knowledge of the company’s trade secrets, such as the formulas and process parameters for the company’s major products, including Thomas’ English Muffins. After accepting an executive level position with Hostess, Mr. Botticella copied several highly confidential Bimbo Bakeries documents onto an external storage device. 

 

Bimbo Bakeries sought and obtained an injunction barring Mr. Botticella from taking the position with Hostess. The Court found that that there was a “substantial likelihood” that Mr. Botticella could not perform his duties at Hostess without disclosing, either intentionally or inadvertently, Bimbo Bakeries’ trade secrets. This decision serves as an important reminder for all employers to take (i) appropriate measures to protect confidential business information, and (ii) proper measures to ensure that new hires do not engage in any unlawful actions when resigning from their prior employers, including any inappropriate conduct related to their prior employer’s trade secrets.

 

If you would like further information about this case, or how it may impact your company, please contact a member of Blank Rome LLP’s Employment, Benefits and Labor Practice Group.