European distributor claims theft of secrets, contract violations against Walker Manufacturing

Editor’s note: This report was edited after publication to add a comment from Bob Walker.

TIMNATH — A Switzerland-based company that handled distribution of Walker Manufacturing Co. lawn mowers in Europe, Asia, Africa and the Middle East has filed a lawsuit against Walker and Federica Spano, a former employee of the distributor now alleged to work directly for Walker.

E-Gate Holding AG alleged in the lawsuit filed Thursday that Walker conspired with Spano to misappropriate confidential records and trade secrets about the distributor network in order to take direct control of the process and cut E-Gate out of commissions and other income. E-Gate was paid 10% on sales in the markets where it distributed Walker mowers.

The lawsuit alleged that as long-time CEO Bob Walker transitioned the company to the next generation of leadership that the nature of the relationship with E-Gate was lost or misunderstood. 

Bob Walker, when contacted Friday, said he was not aware of the lawsuit. “We did have a working relationship with a gentleman in Europe and it came to an end last year,” he said. He said the company’s attorneys would be reviewing it. “I guess if you’ve been in business long enough you’ll encounter something like this,” he said.

The court action seeks damages for civil theft, misappropriation of business value, breach of contract, tortious interference with contract, breach of fiduciary duty and other alleged acts.

The case against Spano alleges that she was prohibited by contract from engaging in secondary employment and was subject to confidentiality terms during and after employment with E-Gate. She was a member of E-Gate’s board with fiduciary responsibilities, the lawsuit said.

E-Gate said in the lawsuit that Walker delivered a contract termination letter Sept. 30, 2022, that set an effective date of Dec. 31 of that year. Ryan Walker, president, signed the letter.

Spano left E-Gate on Dec. 31 as well but remained on the board until April 2023. 

The lawsuit seeks compensatory, consequential, actual and statutory damages.

The case is E-Gate Holding AG v. Walker Manufacturing Co. and Federica Spano, case number 23cv2452 filed Sept. 21, 2023, in U.S. District Court in Denver.

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