000108 Court Puts Restrictions on Ex-Tyson Execs

Fayetteville, AR - A judge ruled that ConAgra Inc. and ConAgra Poultry Co. cannot use certain sales and marketing trade secrets of Tyson Foods Inc.

Springdale-based Tyson Foods, the nation's largest poultry producer, filed suit against ConAgra in August, saying the Nebraska-based food giant had caused it irreparable harm and exploited proprietary information when it hired on Tyson executives and put them in positions at ConAgra “substantially similar” to those they held at Tyson.

Based on a three-day trial in December, Washington County Chancellor John Lineberger found three former Tyson employees had knowledge of the company's trade secrets.

He barred two executives from selling and marketing poultry products at ConAgra for one year. The third executive was prohibited from having contract with certain poultry customers, such as Burger King and Kentucky Fried Chicken, for one year.

Wayne Britt, Tyson's chief executive officer, said the ruling protects the company's trade secrets.

“This suit was always about safeguarding our company, our team members and our shareholders from ConAgra's improper acquisition and use of this confidential information,” he said in a news release.

Lineberger is to hold a second trial next month on nutritional and scientific aspects of the trade-secrets lawsuit. The trial will begin Feb. 1 to determine how ConAgra came into possession of Tyson's feed formula.

RETURN TO HOME PAGE

E-mail: sflanagan@sprintmail.com