Fitness Companies Fight Over Exec

     CHICAGO (CN) – 24 Hour Fitness claims its former COO Michael Sheehan stole confidential information before quitting to become CEO of Bally Total Fitness. It claims Bally hired Sheehan on July 1 specifically to obtain those confidential secrets, including its three-year strategic plan.




     Plaintiff claims that Sheehan quit suddenly on June 23, after 8 years with 24 Hour Fitness, to become CEO of Bally on July 1. “Defendant Bally targeted Defendant Sheen to become CEO of Defendant Bally in order to obtain the proprietary 24 Hour Fitness trade secrets and confidential information as part of Defendant Bally’s new business strategy and/or plans upon its emergence from Chapter 11 Bankruptcy on Oct. 1, 2007,” the complaint states.
     “Defendant Bally offered Defendant Sheehan a compensation package in excess of three times his last compensation package at 24 Hour Fitness,” it states. It claims that before quitting, Sheehan “assembled and organized a home library of proprietary 24 Hour Fitness trade secrets and information,” in violation of company policy. And it claims that Sheehan learned everything he knows about the fitness business in his 8 years with 24 Hour Home Fitness. It seeks monetary damages.
     24 Hour Fitness is represented by R. Mark Halligan with Lovells LLP.

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