UPDATE 1-Amazon sues veteran exec hired by Target

(Adds information on exec's background, context)
By Mari Saito and Anya George Tharakan
SAN FRANCISCO, March 22 (Reuters) - Amazon.com Inc AMZN.O
has sued a veteran logistics executive hired by Target Corp (NYSE:TGT)
TGT.N as its chief supply chain and logistics officer to
prevent him from revealing trade secrets.
Amazon said in the lawsuit filed this week that the former
employee, Arthur Valdez, was in violation of a noncompetition
agreement that he signed while working for the company.
Valdez spent 16 years at Amazon as a senior executive in the
Seattle-based retailer's operations department overseeing the
company's international supply chain expansion.
Target and other major brick and mortar retailers are
aggressively investing in their ecommerce businesses as they try
to catch up with Amazon, which revolutionized online retail
through aggressive pricing and speedy delivery.
In announcing his hiring in February, Target touted Valdez'
experience, calling him a "seasoned supply chain leader" who was
focused on Amazon's international supply chain expansion.
The lawsuit said his new role as the chief supply chain and
logistics officer at Target would breach Valdez' noncompete
agreement with Amazon, which required him to not engage in
competition with Amazon for 18 months after leaving the company.
Amazon claims that Valdez was privy to confidential
information in a highly competitive area for both companies -
moving and shipping goods in the most effective manner.
In its suit, Amazon said the agreement it signed with Valdez
prevents him from disclosing confidential information on
Amazon's future plans. Amazon also said Valdez was part of an
executive level review last year of multiple business divisions
including Amazon Fresh, the company's grocery service, and Prime
Now, which offers one and two-hour deliveries.
Target is pushing to revamp its food business with newer
offerings and aims to get a bigger slice of online grocery
sales, which will put new pressures on its food supply chain.
Target has lagged behind competitors in e-commerce, but is
now stepping up its emphasis on such sales. Recently, the
company signed a deal with online delivery service Instacart to
pick up Target groceries and deliver them to customers in some
cities.
The lawsuit did not specify when Valdez left Amazon.
However, Valdez's attorney informed Amazon that he would start
at Target on March 28, according to the lawsuit.
"We have taken significant precautions to ensure that any
proprietary information remains confidential and we believe this
suit is without merit," Target spokeswoman Molly Snyder said.