Michelin and Carlstar complete trade secret legal dispute

Michelin North America and the Carlstar Group have resolved legal disputes over alleged misappropriation of trade secrets.

Michelin's lawsuit against former Carlstar and Michelin employee Michael Dotson was pending in South Carolina. Former Michelin employee Dotson joined Carlstar in 2018 and left the company in August.

Michael Dotson worked in Michelin R&D from April 2005 to August 2018 before leaving the company to become Vice President of Business Transformation at Carlstar. According to Michelin, in December 2018, a Carlstar employee reported that Dotson allegedly shared Michelin documents during work meetings at Carlstar. Michelin said the information was a trade secret and filed a lawsuit against Carlstar and Michael Dotson in May 2019.

Dotson has previously denied all Michelin allegations. He left Carlstar in August 2020.

Following the peace settlement, Carlstar agreed to compensate Michelin and "provided written statements and guarantees that it has not and will never use Michelin's trade secrets or any confidential information." In addition, Carlstar is committed to taking steps to prevent future misappropriation of trade secrets.

Mr. Dotson also agreed to pay Michelin compensation for damages, and a federal court permanently prohibited him from using or disclosing Michelin's trade secrets or confidential information and ordered the return of any company information he had.

“The trial found no evidence that Carlstar ever knowingly or maliciously possessed Michelin's confidential information or trade secrets. What's more, any information that Carlstar has at its disposal has never been used by the company, ”says Michelin.

Carlstar, based in Tennessee, manufactures and markets industrial and other specialty tires under the Carlisle, ITP and Marastar brands.