A lawsuit from Canadian National Railway accuses a former employee of sharing confidential client information with rival railroad Canadian Pacific, according to multiple media reports.
Canadian National Railway has filed a lawsuit against rival railroad Canadian Pacific, alleging that a former CN employee shared confidential client information with CP.
CN has accused former employee Greg Shnerer, who quit the company to join CP, of sharing information including customer contracts, pricing and business plans, according to multiple media reports. The suit further alleges that CP then used this confidential information to steal business away from its competitor.
According to court documents, CN claims that CP manager Derek Ackford encouraged Shnerer to download confidential information from CN’s electronic databases shortly before leaving the company in June. Ackford, who also worked at CN until a year ago, is now believed to be Shnerer’s supervisor at CP.
“Prior to his resignation and while still employed by CN, Shnerer acted in collaboration with Ackford to injure CN through unlawful means,” CN said in court filings. This included “the unauthorized removal and use of confidential and proprietary information belonging to CN for the purpose of soliciting clients of CN.”
“He left the employ of CN, taking with him confidential and proprietary information belonging to CN for the purpose of using it in the business of CP to unfairly compete with CN,” the company added in its statement of claim.
“The information which Shnerer removed from CN was and continues to be commercially and operationally sensitive in that it permits CP to directly compete with the rates and pricing offered by CN to its clients, as well as CN’s overall business strategy and plans in respect of future prospective clients and business,” CN said.
CN is claiming $2 million in damages from lost freight business and market share and is seeking a court order to bar CP and its employees from using the pilfered information to attract business from the clients involved. The Canadian Press reported that those clients were not named in the lawsuit, and CP has yet to file a statement of defense.
Canadian National Railway and Canadian Pacific are the country’s two largest railroads and control the majority of rail freight movements within its borders.
CN sues CP over alleged corporate espionage
