Grocers ask judge to protect trade secrets
New York City Citing the Federal Trade Commission’s challenge of Whole Foods’ acquisition of Wild Oats, eight grocery-store retailers asked a judge on Tuesday to keep all secrets revealed during the Whole Foods case.
Kroger Co., Delhaize America, New Seasons Market, Gelson’s Markets, Save Mart Supermarkets, H.E. Butt Grocery Co., Ahold U.S.A. and Harris Teeter were subpoenaed for information during the FTC challenge of Whole Foods, including "highly confidential strategic planning documents that provide information regarding store expansions, new store openings, as well as operating objectives and competitive reports," they said in a joint legal filing.
They also said they provided operating statements, including sales and gross profit by store and department.
At the time of the disclosures, the court issued a protective order that safeguarded the information with a $250,000 fine and even suspension or disbarment for any attorneys who violated the order.
However, in a subsequent lawsuit, Kottaras v. Whole Foods Market Inc., plaintiffs have asked for Whole Foods to produce the material that had been protected in the previous case.
The companies said the plaintiffs have not served a subpoena for the information, demonstrated a need for the information or agreed to be bound by the protective order.
The companies are requesting the court notify the grocery chains to set a briefing schedule on the matter so that they can explain why they think the information should be protected. Or alternatively, they ask that the court grant the motion to enforce the same protective order from the previous case.
In March, Whole Foods agreed to sell 13 of its stores to settle the FTC's challenge of its $565 million acquisition of Wild Oats Markets.