Ex-Optum VP defeats injunction bid in non-compete suit, moves to arbitration

Monday, February 25, 2019

Source: MassDevice

A U.S. Federal Judge last Friday rejected a motion seeking to block a former Optum VP from joining the newly formed healthcare venture between Amazon (NSDQ:AMZN), Berkshire Hathaway and J.P. Morgan Chase, according to court documents.

Optum, an IT-based health services unit of UnitedHealth Group, filed a suit against former VP David Smith last month accusing him of printing out a confidential in-depth market analysis moments before printing out his resume to apply for the position at the joint venture. The suit claims that the confidential data was printed the same day he spoke with the venture.

The lawsuit went on to claim that Smith, who resigned in December, also sought confidential information from colleagues not related to his job duties.

In its suit, Optum aimed to keep Smith from joining the venture, nicknamed “ABC”, saying that he could offer trade secrets to the new possible competitor.

In a court document filed last Friday in the U.S. District Court for the District of Massachusetts, Judge Mark Wolf denied a temporary restraining order, stayed the case and allowed a motion to move the case to arbitration.

Optum said that it plans to pursue its claims against smith in the arbitration. The joint venture and Smith’s legal team have not commented on the matter.

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