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Reports: Walmart gets injunction to halt CVS hiring
December 15th, 2010
NEW YORK – Walmart has been granted a preliminary injunction to block former executive Hank Mullany from being hired as the pharmacy chief at CVS Caremark Corp., according to published reports.
A Delaware judge granted Walmart the injunction on Wednesday after a court hearing on the matter, and a trial has been scheduled for March, the Associated Press reported.
Earlier this month, Walmart had obtained a temporary restraining order from the Delaware Court of Chancery to bar CVS Caremark from hiring Mullany, who mostly recently served as the president of the discount store giant's northern U.S. division.
CVS Caremark announced the appointment of Mullany as CVS/pharmacy president on Dec. 3 and said he would start in the post on Dec. 6. However, just hours after CVS' announcement of Mullany's hiring, Walmart obtained the temporary restraining order to block the move pending a hearing.
Walmart claims that the hiring would violate a noncompete agreement because of Mullany's knowledge of confidential Walmart information. Mullany, who joined Walmart in 2006, was executive vice president at the Bentonville, Ark.-based retailer and president of the Walmart North unit, with responsibility for 1,300 stores across 19 states.
CVS and Walmart compete in the pharmacy, health care and retailing sectors.