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PepsiCo, Inc. v. Redmond
Citation:
54 F. 3d 1262 (1995)Facts
William Redmond worked for PepsiCo from 1984 to 1994, eventually becoming General Manager of the California business unit, which represented 20% of PCNA’s profit in the United States. In this position, Redmond had access to PepsiCo’s confidential Strategic Plan, Annual Operating Plan, pricing architecture, attack plans for specific markets, and innovations in selling and delivery systems. In November 1994, Redmond accepted a position as Vice President-Field Operations for Gatorade at Quaker Oats, a direct competitor of PepsiCo in the sports drink and new age drink markets. When informing PepsiCo of his departure, Redmond misrepresented his new position and was not forthcoming about his negotiations with Quaker. PepsiCo argued that Redmond’s new responsibilities at Quaker would inevitably require him to use and disclose PepsiCo’s trade secrets, particularly regarding their 1995 strategic plans for sports drinks and new age drinks. Despite Redmond’s assurances that he would not disclose confidential information, the district court found his lack of candor undermined his credibility and concluded that disclosure was inevitable.
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