https://www.beckerspayer.com/workforce/elevance-sues-former-chief-execution-officer-over-noncompete-agreement/
Elevance Health is suing a former senior executive, alleging he violated a noncompete agreement when he joined Medicare Advantage insurer Alignment Healthcare weeks after resigning.
The complaint was filed June 5 in an Indiana federal court and names Shane Hochradel, who previously served in a variety of executive roles at Elevance starting in 2021, most recently as chief execution officer. Mr. Hochradel notified Elevance of his resignation on May 8 and started June 1 as COO at Alignment.
Elevance argues Alignment is a direct competitor in the Medicare Advantage market, with both insurers operating plans in Arizona, California, Nevada and Texas. Mr. Hochradel’s employment and stock award agreements barred him from taking a competing position for 12 months after his departure, according to the complaint. Elevance says that as chief execution officer, he led the company’s transformation team and helped develop a three-year plan to use artificial intelligence to cut costs and compete against rivals, including Alignment. Elevance alleges he cannot do his new job without drawing on that knowledge.
“Hochradel inevitably will use Elevance Health’s confidential information in his executive-level position at Alignment,” the complaint states.
Elevance also claims Mr. Hochradel did not notify its chief human resources officer that he was in talks with Alignment until after he accepted the role, a step his stock agreements required. The company said it learned of his new role on May 11 and reminded him of his contractual obligations, then informed Alignment of those obligations the following day.
Elevance is seeking compensatory damages and repayment of stock gains tied to equity that Mr. Hochradel exercised or vested over the prior 24 months, plus attorneys’ fees and costs. The suit is at least the fourth Elevance has brought against departing executives over noncompete agreements in recent years. In January, the company sued four former leaders at its Puerto Rico subsidiary who left for rival insurer Triple-S Salud, seeking more than $1.08 million in combined stock repayments. In September, it sued a former senior underwriting executive who joined health benefits company Gravie. And in 2023, Elevance sued its former west region Medicare president after she left for Molina Healthcare. A judge declined to block that move and the case was later settled.
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