Surya Challa worked for TransUnion Risk and Alternative Data Solutions, Inc.

(TRADS), a data fusion company. Under a covenant not to compete, Challa agreed to not work for any TRADS competitor for one year after the end of his employment. Challa quit his job at TRADS, and without informing TRADS, he went to work for IDI, Inc., a competitor. TRADS filed a lawsuit in a federal district against him, alleging breach of their agreement. TRADS argued that Challa’s “presence at IDI created an irreparable injury.” Challa testified that he worked in a different capacity at IDI, relying on publicly available information and skills that he developed before working for TRADS. He was also careful not to reveal TRADS’s proprietary information. From an ethical perspective, is Challa effectively avoiding a conflict of interest?

Discuss.