Second Circuit Denies IBM Non-Compete Appeal
In July we discussed IBM’s non-compete case against former director David Johnson. The trial court denied IBM’s injunction and IBM appealed to the Second Circuit. The Second Circuit denied IBM’s appeal.
The summary order addressed IBM’s failure to show a likelihood of success on the merits:
We do not reach the question because IBM failed to make sufficient showings that it had a likelihood of success on the merits or that a balance of the hardships tipped decidedly in its favor. The district court’s conclusions on these issues were well-supported by the court’s findings that Johnson was extremely credible, and that IBM’s designated witness was much less credible chiefly because IBM’s designated witness lacked familiarity with documents bearing on the controversy.
So, Johnson will continue to work with Dell which recently announced plans to purchase Perot Systems Corp. for $3.9 billion. Johnson was the former director of mergers and acquisitions at IBM and started at Dell 4 months before the Perot acquisition was announced.