retail news in context, analysis with attitude

Reuters reports that a federal judge has issued a temporary injunction preventing John Lavin, a former Senior Vice President, Provider Network Services at CVS, from taking a job at Amazon-owned PillPack, which is a full-service online pharmacy that sorts and packages medications and delivers them to consumers in dated and labeled packets.

The judge said that “allowing him to take a job where he would help drive its ‘disruptive strategy’ would violate a non-compete agreement, and that PillPack is “a CVS competitor and that his job there would be substantially similar to his old one.”

The Providence Journal writes that “Lavin, an Arizona resident, was CVS’s senior vice president for provider network services until his resignation on April 19. Lavin and CVS had signed an agreement in 2017 that would bar him from working for a competitor for 18 months in exchange for shares of CVS stock worth $157,500.”

Lavin has 30 days to appeal.
KC's View:
Hard to imagine that Lavin can go back to work for CVS, and it doesn’t look like he’ll be going to PillPack until October 2020 at the earliest … because there’s no question in my mind that PillPack is an enormous potential competitor to CVS.

I kind of feel bad for the guy. I hope the $157,500 was worth it.