Taiwan's Acer sues former CEO Lanci over move to Lenovo

Published on Wed, Feb 08, 2012 at 07:20 |  Source : Reuters

Like this story, share it with millions of investors on M3
0
0
Share on Tumblr

TAIPEI (Reuters) - Taiwan computer maker Acer Inc <2353.TW> has filed a lawsuit against its former chief executive, Gianfranco Lanci, saying he has breached a non-compete clause in an agreement covering his departure from the company in 2011.

Lanci left Acer abruptly at the end of March last year after a disagreement with other board members over the strategy needed to counter the runaway success of the tablet market, which has cannibalised Acer's profits.

He joined rival PC maker Lenovo Group Ltd <0992.HK> as a consultant late last year to help develop its consumer business with a focus on Europe.

Acer said in a statement late on Tuesday that it had filed the lawsuit in a court in Milan and was also seeking damages from Lanci, who is Italian and currently resides there.

It did not say how much it was seeking. The agreement covering Lanci's departure had a 12-month non-compete clause, it said.

"We believe Mr. Lanci has clearly breached the terms of the non-compete agreement he entered into willingly," the statement said. "This is about Acer defending a binding legal agreement with its former employee."

"We are taking legal action against him in order to protect Acer's rights and interests," it added.

Lanci said after his departure that he left because the board wanted more focus on operations in Taiwan when he believed the company had to look abroad. Acer Chairman JT Wang responded at the time that Lanci had "hurt company's business foundation".

(Reporting by Jonathan Standing; Editing by Richard Pullin)

  

Trending News

Business News

Google ChromeOS goes big with Chromebox, new Chromebook
Did Sebi miss any tricks in Ambani consent order? "Did Sebi miss any tricks in Ambani consent order?"

Bharat bandh halts normal life, rail traffic hit

Samir Arora Says On CNBC-TV18 Mkt Not Willing To Ascribe Premium To IT Cos Due To `

The latest earning numbers FIRST on CNBC-TV18
Videos

May 30 2012, 23:16

Clash of Spain and ECB worrying investors: Verstrate

- in FII View

May 30 2012, 11:18

Result corner: Ajay Bodke`s top bets from across sectors

- in MARKET OUTLOOK

Interviews

May 30 2012, 17:04 | Source: CNBC-TV18

Margins may be hit on one-off items in EBITDA: Sun Pharma  

May 30 2012, 16:32 | Source: CNBC-TV18

Essar announces Rs 175cr deal; to pay-off debts with fund  

Subscribe to

Moneycontrol Newsletters

Moneycontrol.com offers you a choice of various sectoral and other newsletters for FREE!