EMC moves to stop Dublin firm hiring executive

Technology giant EMC is seeking a US court injunction to prevent Dublin-based technology firm, Eurologic Systems, hiring a former senior executive. The US firm claims the departure of Mr Kenneth Todd Gresham for Eurologic could cost EMC up to $1 billion (€1.3 billion) in lost revenues.

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

In court last week, EMC lawyers claimed Mr Gresham had already used information gained at EMC to help Eurologic court Dell and other EMC customers. The company, founded by US ambassador to Ireland, Mr Richard Egan, also sought to discredit Mr Gresham's reputation by claiming he had lied about graduating from college. In return, Mr Gresham's lawyers alleged he had left EMC because he felt uncomfortable with the firm's revenue recognition practices. An EMC spokeswoman yesterday denied allegations of improper bookkeeping.

Eurologic is one of the most successful private Irish technology firms and is a competitor of EMC in the development and supply of network storage systems. It replaced EMC - the world's largest data storage firm - as a key supplier of certain types of networking equipment to Dell last year. The firm made a pre-tax profit of almost $20 million in the year to June 30th, 2000, on turnover of almost $200 million.

At a court hearing in Massachusetts last week, EMC told Suffolk County Superior Court Judge Mr Allan van Gestel that Mr Gresham had violated a non-compete clause in his employment agreement by joining Eurologic. This clause 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.

EMC claimed Mr Gresham initially took a job as an executive officer of Eurologic but later changed his role there to strategic business consultant.

Eurologic denies this, and has refused to comment further on the case when contacted by The Irish Times. EMC lawyers also claim Mr Gresham took EMC secrets with him when he left.

Mr Gresham's lawyer denied this and described a number of suspicious events at Mr Gresham's home this summer, including break-ins and an anonymous caller telling Mr Gresham his home was bugged. The lawyer said these incidents happened not long after Mr Gresham testified in a deposition that he had left EMC, in part, because he was uncomfortable with EMC's revenue practices.

According to Reuters, Mr Gresham's lawyer said in court: "I can't say this is EMC, but the timing doesn't look right."

EMC denies any claim of improper bookkeeping and says that the allegations have no merit.