IGT sues over defection of exec to Bally Gaming
Wednesday, Jan. 27, 1999 | 10:36 a.m.
There is a talent tussle in District Court over an International Game Technology sales manager who defected to IGT's main competitor in the gambling machine business, Bally Gaming.
The lawsuit, filed last week by IGT attorneys Susan Myers and Cam Ferenbach, alleges that the employee, Mark Wiedemer, violated a noncompetition clause in his employment contract with IGT.
That clause prohibited Wiedemer from working for a competitor within a year of leaving IGT, where he had been employed as "a highly compensated sales manager" for six years, the lawsuit stated.
Wiedemer resigned Nov. 30 and went to work for Bally Gaming on Dec. 1, failing to tell his old employer although he was in frequent contact because they were trying to persuade him to rescind his resignation.
The lawsuit states that Wiedemer also signed a secrecy agreement as part of his IGT employment that required him not to reveal IGT trade secrets about manufacturing techniques, processes, formulas, work in process or other information.
Wiedemer is alleged in the lawsuit to have violated that agreement.
Bally Gaming is charged with hiring Wiedemer "with the intent of using IGT's proprietary information and soliciting and obtaining orders from IGT customers."
For five years Wiedemer worked out of IGT's European offices and sold its products through the Caribbean and South America. For the past year he worked in Las Vegas.
The lawsuit contends that for Bally Gaming, Wiedemer has been hawking its products through the Caribbean and South American markets.
The lawsuit, assigned to Senior District Judge James Brennan, is asking for a temporary restraining order and injunction preventing Wiedemer from violating the non-competition and trade secret agreements.
Monetary damages also are sought for sales made by Bally Gaming to IGT customers by Wiedemer.
Mark Lerner, assistant general counsel for Bally Gaming parent Alliance Gaming, said a hearing is scheduled for Feb. 4. "At that time, the parties will have the opportunity to argue the merits of the case," he said.
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