Dow Chemical Sues GE Over Hirings

In another high-profile industrial espionage case, Dow Chemical Co. on Tuesday filed a lawsuit charging General Electric Co. with pirating trade secrets from Dow’s automotive plastics business.

Dow’s complaint, filed in Oakland County Circuit Court in Pontiac, Mich., alleges that GE systematically and aggressively targeted, recruited and hired 14 Dow employees who were privy to Dow trade secrets.

Dow said GE put the employees into jobs where they would inevitably use confidential information on Dow’s advances in automotive plastics technology.

The suit seeks unspecified monetary damages and a permanent injunction that would, among other things, prevent GE from any activity using Dow’s information.

Oakland County Circuit Judge Edward Sosnick issued a temporary restraining order to that effect.

The order, which requires confirmation at an April 9 hearing, prohibits GE from recruiting new Dow employees and from destroying any records about the 14 former Dow employees. It also requires GE to return any Dow documents the employees brought to GE and to give Darin Evans--the only ex-Dow employee named as a defendant in the suit--a new job where he would not be in a position to use Dow secrets.

At the heart of the suit is Dow’s expertise in designing and integrating complex plastic components such as car and truck instrument panels. It maintains its superior technological know-how earned it lucrative contracts to provide the plastics used in the instrument panels for Chrysler Corp.’s new Dodge Dakota pickup truck and Jeep Cherokee sport-utility vehicle.

GE, based in Fairfield, Conn., said it will comply with the restraining order but will vigorously fight the lawsuit.

“GE respects the value and importance of trade secrets,” company spokesman Bruce Bunch said. “We have reviewed Dow’s allegations and find them to be groundless and without merit. GE has not obtained any Dow Chemical trade secrets.”