Hudson’s Salvage accused of trade secrets theft

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Published: February 3,2011

Tags: courts, lawsuit, retail, trade secrets

HATTIESBURG — Hudson’s Salvage has been accused in a federal lawsuit of stealing trade secrets from a competitor.

The Hattiesburg American reports Channel Control Merchants, owner of the Treasure Hunt and Dirt Cheap stores, had filed a lawsuit this in U.S. District Court against Hudson and his business partners.

The lawsuit was filed against Billy Hudson Sr., a state senator and retired Hudson’s CEO, and his current business partners, Nicholas Shattles, Steve Davis and Frank Breazeale.

Central Control Merchants alleges Shattles, Davis and Breazeale took trade secrets with them when they went into business with Hudson after being employed with Channel Control Merchants.

The lawsuit alleges that the men took lists of salvage vendors with them after they were no longer employed, violating a confidentiality contract, and now use that information to help Hudson’s business.

Hudson’s has until Feb. 18 to formal respond to the lawsuit.

Channel Control Merchants alleges that the former employees broke a no-compete agreement.

The lawsuit also claims Hudson coerced the men to breach their contracts, that the men violated federal law through unauthorized use of Channel Control Merchants-owned computers and that Hudson’s business is competing unfairly, among other allegations.

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