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Amazon Adds Fire to Wal-Mart Feud

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Bloomberg News

Amazon.com Inc. is accusing Wal-Mart Stores Inc. of waging an intimidation campaign against companies seeking to hire workers away from the world’s largest retailer, court papers show. In response to Wal-Mart’s recent suit alleging that Amazon.com is luring away its workers to gain access to the chain’s trade secrets, Amazon officials said Wal-Mart executives have been sending other companies letters threatening to sue them if they add former Wal-Mart employees to their staffs. Seattle-based Amazon didn’t identify the companies. The allegation comes as Amazon asks an Arkansas judge to deny Wal-Mart’s request for an order barring the Internet book and music seller from using any trade secrets gleaned from former Wal-Mart workers. Wal-Mart contends Amazon and its units are targeting Wal-Mart workers to get secrets about its computerized merchandising and distribution systems. Bentonville, Ark.-based Wal-Mart has made it clear that “regardless of the type of company involved, whether a direct competitor such as Kmart Corp. or a start-up Internet bookseller like Amazon.com, Wal-Mart will make life difficult for any company that hires its employees and the employees who leave,” Amazon’s lawyers said in the papers. Wal-Mart executives dismissed Amazon’s allegations about an intimidation campaign, saying it hasn’t threatened other companies or any of its workers. Wal-Mart’s shares rose $1.19 to $74.94 on the New York Stock Exchange, while Amazon.com’s rose $37.38 to $218 on Nasdaq.

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