IBM says former chief dealmaker misused resources
June 26 |
June 26 (Reuters) - IBM (IBM.N) filed a complaint in a U.S. federal court in New York alleging its former chief of mergers and acquisitions misused company resources for his personal benefit, court documents show.
In an amended complaint filed on Thursday, IBM said its findings showed David Johnson had secretly misused company facilities, resources and personnel for his own advantage and towards the creation of a venture capital firm, JSJ Capital Management.
IBM had earlier claimed Johnson violated a 2005 non-compete agreement by taking a post at rival Dell Inc (DELL.O) in May.
The company also found Johnson misused IBM's confidential information for his own financial interests for at least the preceding four years, filings showed.
"Beginning in at least 2005, Mr Johnson took substantial steps towards the creation of a venture capital firm with focus on investments in the technology sector. Along with two other individuals, Johnson conceived of this venture," IBM said in the filing.
The complaint also alleged Johnson repeatedly used IBM resources and facilities to prepare presentations for potential JSJ investors and used IBM-funded trip to the Middle East to cultivate potential investors for JSJ.
IBM said there was a "grave risk" Johnson would disclose IBM's proprietary information to its rival Dell.
Johnson's lawyer could not be reached for comment.
The case is IBM v. David Johnson, 09-cv-04826, U.S. States District Court, Southern District of New York. (Reporting by Chakradhar Adusumilli in Bangalore; Editing by Dan Lalor)
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