XPO Lawsuit Against Former Employees

Two former XPO employees, based in the Kansas City area, are the focus of a lawsuit filed in North Carolina, despite not having worked in the state. The suit was filed there due to North Carolina's favorable noncompete laws and the company's extensive operations in the state.

The lawsuit accuses the two employees of violating their noncompete agreements after leaving XPO to join competitor Central Transport in 2024.

Farnan and Schatteman, who signed Confidential Information Protection Agreements with XPO in 2021 and 2020, respectively, were prohibited from soliciting XPO customers for six months and engaging in competing business activities after leaving. 

Their agreements also required them to maintain confidentiality and return all company property. XPO claims that after joining Central Transport, both employees began soliciting XPO customers and violated the territorial restrictions outlined in their noncompete agreements, which cover the U.S., Canada, and Mexico, and extend 50-100 miles from any XPO office.

The lawsuit also highlights significant losses in customer accounts, with several accounts experiencing sharp declines in value after the employees' departure. XPO asserts that attempts to contact the employees and their attorneys were met with no response.