Posted by chicagomedia.org on May 22, 2008 at 22:09:59:
Clear Channel sues Tribune over executive hire
By: Lorene Yue
May 22, 2008
(Crain's) — Clear Channel Communications Inc. has sued Tribune Co., accusing the Chicago media company of unfair competition and misappropriating trade secrets when it lured away a key executive.
Clear Channel is seeking a temporary injunction to keep Andrew Friedman, recently named vice-president of Tribune's interactive division, from working for his new employer until the end of the year. The suit, filed Monday in federal court, names Mr. Friedman and Tribune.
"Clear Channel will not tolerate the Tribune's interference with valuable business contracts belonging to our company and intends to pursue all legal remedies available to put a stop to it," Andy Levin, an executive vice-president and chief legal officer at Clear Channel, said in a statement.
A Tribune representative was not available to comment.
Mr. Friedman is described in the suit as instrumental in building Clear Channel's online and interactive business before he left the San Antonio, Texas-based company on May 12. His former employer claims he breached his employment contract, which runs through Dec. 31, breached his fiduciary duty and threatened disclosure of Clear Channel trade secrets.
The suit claims Mr. Friedman has information that is "of particular competitive significance and value" and that he has been providing that information to Tribune. Clear Channels said it analyzed Mr. Friedman's company laptop and found thousands of files and e-mails were deleted and proprietary information transferred.
Tribune, under the direction of Chicago billionaire Sam Zell, recently hired at least four other former Clear Channel executives — so many that the company even called attention to the phenomenon by titling an April news release: "Tribune announces executive appointments and, amazingly, only one is connected to Clear Channel Communications."
Tribune's most high-profile hire was Randy Michaels, a key executive at Clear Channel until he left in 2002. He now is chief operating officer at the Chicago company, No. 2 to Mr. Zell.