By Eric Kulisch / www.americanshipper.com / February 9th, 2016
The less-than-truckload rivals are involved in a legal dispute over the hiring practices of YRC, which allegedly lured away two high-level XPO executives who were contractually bound not to work for a close competitor or divulge proprietary information.
YRC Freight on Monday publicly dismissed XPO Logistics’ lawsuit for allegedly poaching top corporate executives and trade secrets as nothing more than sour grapes on the part of a close competitor.
In a complaint filed in Delaware state court, XPO is seeking injunctive relief and damages for what it claimed is irreparable harm to its less-than-truckload division, XPO Freight, caused by YRC Freight. The Overland Park, Kan.-based rival recently hired two top XPO Freight executives who were part of the company's $3 billion acquisition of Con-way Inc. in late October.
XPO claims that the hiring offers were accepted by both individuals before the acquisition was finalized, but that they stayed on until Nov. 9 to essentially act as sleeper cells that gathered internal intelligence on XPO’s new business strategy, finances, and pricing and recruited other XPO Freight managers for YRC.
A YRC spokesman last week said the company doesn’t comment on pending litigation, but after a slew of news stories about XPO’s complaint the motor carrier issued a statement dismissing the claims.
“There is no substance to the claims made by XPO against YRC Freight in its lawsuit. We will vigorously defend against these meritless allegations presented by a competitor that has chosen to invoke the legal process in an attempt to thwart the progress being made by YRC Freight in service to its customers," the company said.
“We are fortunate to have created a culture which has attracted many industry professionals who want to work with proven leadership. We welcome them as part of our 20,000 YRC Freight team members who are champions of safety and customer service.”
XPO Freight and YRC Freight are the second and third largest LTL carriers, respectively, in North America.
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