IBM Wins Round Against Dell Exec - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
IT Leadership // IT Strategy

IBM Wins Round Against Dell Exec

David Johnson cannot assume full duties in Round Rock until lawsuit is resolved.

An appeals court has granted IBM's emergency request to impose strict limits on the duties its former M&A chief can perform while working at Dell until Big Blue's breach of contract lawsuit against the executive is fully heard.

The U.S. Court of Appeals for the Second Circuit granted IBM's request for an injunction on Friday. The injunction upholds a previous court ruling, briefly overturned by the Manhattan federal District Court, that limits former IBM VP for corporate development David Johnson to sideline duties at Dell.

Under the ruling, Johnson cannot participate in Dell strategy meetings or weigh in on matters that could impact IBM, at least until the case is complete. Johnson must also keep a log of his activities at Dell and supply it to the court. Johnson joined Dell as senior VP for strategy last month—prompting an almost immediate lawsuit from IBM.

IBM claims Johnson violated a non-compete clause and that his departure to a competitor would be injurious because Johnson is aware of Big Blue's innermost secrets. For his part, Johnson maintains the agreement carries no legal weight because he intentionally signed it in the wrong place.

Dell has been relatively timid on the acquisition front despite its status as one of the world's largest tech vendors. The company has completed just ten deals since 1999—the largest a $1.4 billion buyout of storage technology specialist EqualLogic.

By contrast, IBM announced or sealed 14 acquisitions in 2008 alone, including the $5 billion takeover of Canadian business software developer Cognos.

Johnson has overseen IBM's frenetic merger activity for the past nine years and is a twenty-seven year veteran of the company.

The case remains ongoing in U.S. District Court for Southern Manhattan.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
News
Think Like a Chief Innovation Officer and Get Work Done
Joao-Pierre S. Ruth, Senior Writer,  10/13/2020
Slideshows
10 Trends Accelerating Edge Computing
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/8/2020
News
Northwestern Mutual CIO: Riding Out the Pandemic
Jessica Davis, Senior Editor, Enterprise Apps,  10/7/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
[Special Report] Edge Computing: An IT Platform for the New Enterprise
Edge computing is poised to make a major splash within the next generation of corporate IT architectures. Here's what you need to know!
Slideshows
Flash Poll