Fruit of the Loom, Inc. (Fruit of the Loom) and Russell Brands, LLC (Russell) sued Lonnie Bishop, a former employee, for violating a Trade Secrets and Non-Competition Agreement that he signed in July 2010. Bishop served as manager of a Russell distribution center in Alabama and helped develop a system of managing inventory. According to the Agreement, Bishop would not work for a competitor of Fruit of the Loom or Russell Brands for twelve months after his employment terminated. Shortly after resigning from his position at Russell’s in November 2010, Bishop went to work for Gildan Activewear, Inc. a competitor of the plaintiffs.
On January 21, 2011, Fruit of the Loom and Russell’s motion for a preliminary injunction was denied. Although a denial of a preliminary injunction is typically considered outcome determinative, often resulting either in settlement or withdrawal of the complaint, Fruit of the Loom and Russell persisted. However, the parties stipulated to dismiss the case with prejudice on May 12, 2011.