OAKLAND, Calif., May 1, 2009 - The Clorox Company filed a civil complaint against SC Johnson & Son, Inc. on April 21, 2009, including motions for a temporary restraining order and an injunction related to the employment by SC Johnson of Tim Bailey, Clorox's former vice president of product supply. SC Johnson is one of the company's most direct competitors. We believe this action is necessary to prevent disclosure of our company's trade secrets and other confidential and proprietary information.
At a May 1, 2009, hearing on this matter, the judge requested a more complete review of the entire issue as well as provided us with the opportunity to conduct discovery and depose Mr. Bailey and SC Johnson. The judge provided Clorox with a week to file a reply to papers SC Johnson filed yesterday afternoon. Clorox has an agreement in place with SC Johnson that SC Johnson will not allow Mr. Bailey to commence performance of his employment duties and that SC Johnson will not communicate directly with Mr. Bailey until the court has ruled on the request for a temporary restraining order.
In his role as vice president of product supply for Clorox, Mr. Bailey was responsible for all supply chain matters at Clorox for all products in all countries. As a senior leader, he participated on the company's key senior governance teams and, therefore, had knowledge of much of the company's most sensitive and competitive information, including status of the company's key strategies, R&D plans, new technologies, business plans and future product launches.
Clorox has taken this action because, in the company's view, Mr. Bailey would inevitably disclose or use such information in the course of his employment at SC Johnson.
Clorox typically does not comment on pending litigation. Nevertheless this is a situation in which we are trying to prevent the transfer of our trade secrets and intellectual property to one of our most direct competitors, which could harm our business. While we regret the need to take such action, we have an obligation to our stockholders, employees and consumers to vigorously protect our business and intellectual property.
The Clorox Company
The Clorox Company is a leading manufacturer and marketer of consumer products with fiscal year 2008 revenues of $5.3 billion. Clorox markets some of consumers' most trusted and recognized brand names, including its namesake bleach and cleaning products, Green Works™ natural cleaners, Armor All® and STP® auto-care products, Fresh Step® and Scoop Away® cat litter, Kingsford® charcoal, Hidden Valley® and K C Masterpiece® dressings and sauces, Brita® water-filtration systems, Glad® bags, wraps and containers, and Burt's Bees® natural personal care products. With approximately 8,300 employees worldwide, the company manufactures products in more than two dozen countries and markets them in more than 100 countries. Clorox is committed to making a positive difference in the communities where its employees work and live. Founded in 1980, The Clorox Company Foundation has awarded cash grants totaling more than $73.4 million to nonprofit organizations, schools and colleges. In fiscal 2008 alone, the foundation awarded $3.7 million in cash grants, and Clorox made product donations valued at $5.3 million. For more information about Clorox, visit www.TheCloroxCompany.com.
Media Relations
Kathryn Caulfield
510-271-7209