February 11, 2026
WESCO v. Eckart: When Does Competition Become Conspiracy?
Six ex-WESCO execs accused of engineering a replica Atlanta business dubbed “AED 2.0”
What happens when several executives leave a major distributor to join a competitor — and then 30-plus colleagues follow them out the door? At what point does normal employee movement cross the line into liability for poaching, trade secret theft, and customer flipping?
Those are the questions at the heart of WESCO Distribution v. Eckart Supply, a lawsuit first reported on by tED Magazine and filed in December in Georgia federal court that alleges a tightly coordinated effort to build a copycat competitor while key players were still inside the house. According to WESCO, this wasn’t just competitive attrition. It was a plan to replicate the very business WESCO bought ten years ago: Atlanta Electrical Distributors (AED), acquired in 2016 for its five-location Georgia footprint and $85 million in annual revenue. The alleged internal nickname for the new venture? “AED 2.0.”
The defendants include a group of six former WESCO employees, including multiple executives and managers, as well as Eckart itself, a regional competitor with 27 branches from Chicago to West Palm Beach — five of them now in Georgia. WESCO, which operates more than 800 locations and brings in $22 billion in annual sales, claims that several of its Georgia branches have since closed due to the alleged scheme.
A Premeditated Blueprint, or Just Competitive Hiring?
The complaint outlines a methodical, behind-the-scenes plan. WESCO alleges that while still employed — and under restrictive covenants—former AED leaders worked with Eckart to build out a new operation: scoping locations, lining up suppliers, and preparing to hire en masse.
And that hiring wasn’t small. WESCO says more than 30 employees exited in a short window, including sales reps, managers, and warehouse personnel. Some of them, according to the complaint, were still bound by non-solicitation agreements when they allegedly encouraged others to follow.
Beyond the headcount, WESCO says internal data went out the door too. The lawsuit accuses several former employees of taking confidential pricing models, project pipelines, and customer lists. One employee allegedly remained on the inside while channeling proprietary information to Eckart in real time.
The Customer Connection and Alleged Endgame
Adding another layer, the complaint accuses the owner of Luca Electric — a WESCO customer — of being promised a stake in the new Eckart venture. In return, WESCO claims, he diverted active projects and helped accelerate the shift in business.
Encrypted messaging apps, real estate developers, lawyers, and even family members of customers are described as part of the planning circle. The complaint suggests that this wasn’t just about launching a local branch — it was about packaging the Georgia operation as a viable, ready-made AED clone, potentially for acquisition by a national distributor lacking a Southern footprint.
On Monday, the defendants filed a motion to dismiss several of WESCO’s claims, including those tied to fiduciary breach, conspiracy, and tortious interference. They’re not rebutting facts yet. They’re arguing that even if the facts were true, some claims don’t hold up legally. The trade secret and restrictive covenant claims, however, remain live.
This isn’t the first time WESCO has made a strategic move in Georgia — it’s just the first time it’s alleged that someone tried to reverse-engineer one of those moves from the inside. The lawsuit may not rewrite the rules of the industry, but it raises pressing questions: How much of a business can leave with its people? And when does a leadership exit become a legal event, not just a competitive one?
