Court Puts Gag Order for Former Wal-Mart Surveillance Operative

Employee told not to comment on Wal-Mart business surveillance, eavesdropping systems


Wal-Mart won a gag order to stop a fired security operative from talking to reporters and a judge ordered him to provide Wal-Mart attorneys with "the names of all persons to whom he has transmitted, since January 15, 2007, any Wal-Mart information."

The court papers made public Monday follow a string of revelations about the retailer's large surveillance operations and its business plans.

Wal-Mart Stores Inc. filed a lawsuit and request for a temporary restraining order directly with a Circuit Court judge after court hours Friday.

In the lawsuit, Wal-Mart alleges that former security operative Bruce Gabbard violated trade secrets law by revealing to reporters "confidential information about Wal-Mart security systems and operations" and "highly confidential information about Wal-Mart's strategic planning". It seeks unspecified damages.

The judge's temporary order bars Gabbard from disclosing any further Wal-Mart trade secrets or confidential information.

The suit and restraining order were filed two days after Wal-Mart apologized to activist shareholders for Gabbard's revelation that they were considered potential threats and ahead of a story in Monday's editions of the Wall Street Journal on Gabbard's claim that Wal-Mart had a super-secret "Project Red" aimed at bolstering its stagnant share price.

Wal-Mart declined to comment on the "Project Red" report except to say in a statement, "Our senior management, our board and their advisors regularly conduct thorough, strategic reviews of all aspects of our business. That's just good governance. We look at a full range of alternatives, many of which are considered and rejected, and we will not comment specifically on any of them."

The Interfaith Center on Corporate Responsibility, a coalition of faith-based investors that has worked with Wal-Mart since 1990 on a variety of social issues, demanded Monday that Chief Executive Lee Scott apologize formally for a memo that lists the group as a potential threat.

ICCR members hold more than 2 million shares in the retailer.

"More importantly, we ask CEO Lee Scott to shift shareowner resources away from these public relations activities and instead focus on the core issues ICCR and other concerned investors have been bringing to Wal-Mart for almost two decades: the human dignity inherent in each supply chain worker, in-store employee, and customer of Wal-Mart," the group said in a statement.

Wal-Mart's union-backed critics said the latest revelations about Wal-Mart's security operations and the share price project deserved congressional scrutiny.

"Given the scope of the Wal-Mart spy scandal, the time has come for congressional hearings to find out how deep this rabbit hole goes," said Chris Kofinis, spokesman for WakeUpWalMart.com.

The restraining order suggests that Gabbard, 44, might still have Wal-Mart equipment or documents. It orders him to surrender any documents or data and a long list of "all home and work computers, personal digital assistants, hard drives, thumb drives, and all other electronic or digital media and hardcopy information."

It also orders Gabbard, at Wal-Mart's request, to provide lawyers with the names of contacts to whom he has provided information about the company.

Gabbard, a 19-year Wal-Mart veteran, was fired along with his supervisor last month for allegedly recording phones calls between a reporter and company officials and for intercepting pager messages between other persons. Wal-Mart said Gabbard violated its policies.

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