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Bloomberg reports that Walmart has sued to stop the hiring by CVS Caremark of its former executive vice president and president of its northern US division, Hank Mullany, to be its new president of CVS Pharmacy.

According to the story, Walmart charges that the hiring will violate a non-compete agreement signed by Mullany; an legal order has been issued that prevents Mullany from starting the new job until a December 15 hearing.

According to the Bloomberg story, “Mullany, hired by Wal-Mart in 2006, oversaw operations at 587 Wal-Mart stores in 13 states including Pennsylvania, Virginia, New Jersey and New York, according to the suit. He was ‘privy’ to Wal-Mart’s national strategies and responsible for implementing those strategies in the northeastern U.S., lawyers for the Bentonville, Arkansas-based retailer said.

“Wal-Mart and CVS, the largest provider of prescription drugs in the U.S., compete over prescription and over-the- counter drugs, as well as beauty aids and health products, according to the complaint ... Mullany signed a non-compete agreement in December 2009 when he was promoted to president of Wal-Mart North, according to Wal-Mart’s complaint. That role put him in charge of real estate and supply-chain functions for 1,312 stores in 19 states, according to the complaint. The non-compete agreement barred him from working for a competitor for two years after leaving Wal- Mart. He resigned in October and left the company on Nov. 5.”
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