Logistics provider accuses Alabama carrier of raiding its workforce, stealing trade secrets

Alabama Motor Express, based in Ashford, Alabama, operates trucking, logistics, drayage and driver training businesses. Federal Motor Carrier Safety Administration data lists AMX with 234 power units and 234 drivers.

At the center of the lawsuit are Cochran and Jones, two longtime DTH employees who remained with the operation after Imperative’s acquisition, according to court filings.

Jones had worked for DTH and Imperative since 2000 and was director of operations when she left the company Feb. 10. Cochran had worked there since 2005 as an area sales representative before resigning March 30.

Both subsequently joined AMX.

Imperative alleges their departures were part of a much broader exodus. According to the complaint, five employees from the same Imperative office left in rapid succession to work for AMX.

Imperative alleges the departures were a “coordinated effort” encouraged by AMX to acquire key employees as well as access to Imperative’s trade secrets, customer relationships and other confidential information.

The lawsuit says Cochran and Jones had signed restrictive covenant agreements prohibiting them from improperly using or disclosing trade secrets and confidential information and from soliciting certain customers and employees following their departure.

Lawsuit alleges customer, pricing data was taken

Imperative alleges Cochran sent or blind-copied confidential documents to his personal email account shortly before leaving the company.

The information allegedly included customer financial data, margin and pricing information, active shipment lists, sales codes, details about customer-specific logistics operations and a competitive bid.

Imperative claims Cochran retained the information so he could access it after joining AMX.

The lawsuit focuses heavily on an unidentified longtime customer referred to as “Client A.”

After joining AMX, Cochran allegedly began pursuing and bidding against Imperative for the customer’s freight. The complaint says Cochran arranged a lunch with Client A even after Imperative sent cease-and-desist letters — an event Imperative says it discovered when the customer mistakenly sent the invitation to Cochran’s former company email address.

Imperative claims its revenue from Client A subsequently declined and that the customer began doing business with AMX. The company alleges AMX’s competing bids were informed by customer lists, shipment data, pricing and competitive bid information Cochran had taken.

The allegations against Jones involve post-employment access to Imperative’s computer systems.

Imperative alleges Jones accessed its Google Drive systems on April 9 and April 14 — nearly two months after leaving the company — and viewed at least 36 confidential files.

Those documents allegedly included standard operating procedures, rate sheets, quality policies and weekly operational notes concerning Client A. Imperative contends the access was intentional and required someone to log in and navigate through the system.

The company alleges Jones obtained information involving pricing, customer lists, shipments, financial data, operating procedures and bids and later solicited Imperative customers on behalf of AMX.

Imperative says AMX was warned

Imperative sent AMX cease-and-desist letters on June 5 concerning five former employees who had joined the carrier, according to the lawsuit.

The letters demanded that AMX prevent the former employees from soliciting Imperative customers or employees or using the company’s confidential information and trade secrets.

AMX’s attorney responded July 14, acknowledging receipt of the allegations concerning the restrictive covenant agreements and Imperative’s claim that AMX had tortiously interfered with them.

Imperative alleges, however, that AMX continued employing Cochran and Jones in roles involving customer solicitation after receiving the letters and failed to ensure they complied with their agreements.

The lawsuit claims AMX’s hiring of five employees from the same Imperative office amounted to a “targeted and coordinated effort to raid Imperative’s workforce” and alleges the carrier sought to divert established customer relationships rather than merely compete for business.

The lawsuit asserts seven counts, including violations of the federal Defend Trade Secrets Act and Georgia Trade Secrets Act, breach of contract against Cochran and Jones, tortious interference against AMX, and a Computer Fraud and Abuse Act claim against Jones.

Imperative says the alleged unauthorized computer access by Jones alone resulted in at least $5,000 in investigation, forensic analysis, security and remediation costs.

Imperative is asking the court to prohibit the defendants from using its trade secrets or confidential information and from improperly soliciting its customers or employees. It also wants the defendants ordered to return or destroy company information in their possession.

The company is seeking unspecified compensatory damages, including lost profits and alleged unjust enrichment, as well as disgorgement of benefits allegedly obtained from the conduct. Imperative also seeks exemplary damages of up to twice the compensatory damages awarded under federal and Georgia trade secrets laws.

Neither Imperative Logistics or AMX responded to a request for comment from FreightWaves.

Why it matters: The lawsuit highlights the value of customer relationships, pricing data and operational know-how in the highly competitive freight market, where the departure of a handful of experienced employees can potentially shift freight and revenue from one logistics provider to another.