Judge allows EMC man to join Eurologic

Technology giant EMC has failed to win an injunction to prevent a former executive from joining Dublin-based firm, Eurologic …

Technology giant EMC has failed to win an injunction to prevent a former executive from joining Dublin-based firm, Eurologic Systems. Mr John Maybury, chief executive of Eurologic, welcomed the ruling last night and described EMC's attitude throughout the case as "arrogant".

He said Eurologic, a provider of network storage systems, would be able to continue its consulting relationship with Mr Gresham following the judge's ruling.

EMC, the company founded by US ambassador to Ireland, Mr Richard Egan, had accused Mr Gresham of breaking a non-compete clause signed with the firm. The firm's employment contract bans key staff from joining competing firms as officers, directors or from holding 1 per cent or more of rival companies for one year after leaving EMC

Mr Gresham, formerly EMC's vice-president of global sales alliance, left the US firm in April and has been working since then as a contractor for Eurologic.

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However, Mr Allan van Gestel, Suffolk County Superior Court Judge in Massachusetts, ruled yesterday that Mr Gresham had not been shown to have any position with Eurologic. He discounted EMC's argument that Mr Gresham's consulting relationship with Eurologic was a sham.

Mr van Gestel did rule that some elements of Mr Gresham's key employee agreement with EMC should be enforced, at least at first. These include provisions relating to customer and vendor confidentiality.

EMC had alleged in a Boston court last week that Mr Gresham had used information gained at the US firm to help Eurologic court its customers. It had claimed the departure of Mr Gresham to Eurologic could cost EMC up to $1 billion in lost sales.

However, Mr Maybury said the firm's interest in Mr Gresham had nothing to do with his knowledge of EMC. "His knowledge of the industry is very good and he is helping us with recruitment," he added.

Mr Maybury said he was surprised at EMC's decision to take the case because Eurologic was a very small player in comparison.

"It does display a great deal of arrogance from EMC. We've seen that in the way they've gone about the whole process," he added.

During the case, EMC, one of the world's largest data storage firms, had sought to discredit Mr Gresham by accusing him of lying about graduating from college. In return, lawyers acting on behalf of Mr Gresham said he had left EMC because he felt uncomfortable with the firm's revenue recognition practices.

EMC said last night it would continue to prosecute the case and pursue a broader injunction.