CHICAGO – 24 Hour Fitness, has filed a lawsuit against Bally Total Fitness accusing Bally of illegally hiring new CEO Michael Sheehan away from 24 Hour to gain access to trade secrets.

Sheehan had been with 24 Hour for seven years and most recently served as the company’s chief operating officer before taking over as Bally CEO on July 1.

24 Hour is concerned that Bally will learn information about market strategies, performance data, expansion strategy and relationships with key vendors. 24 Hour also claims that Sheehan’s former contract with the company included a non-compete clause that prevented him from joining a competitor for two years after he left his job.
24 Hour has tried unsuccessfully to sue Bally and Sheehan at the county and state level in California.

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