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1Scan for outdated or missing drivers - takes under a minute2Clear out junk files and repair common Windows errors3Fix the driver behind crashes, sound loss and screen glitchesIBM and former executive Lindsay-Rae McIntyre settled a 2018 dispute over her move to Microsoft, ending the case without a public ruling on whether IBM’s one-year non-compete was enforceable or whether McIntyre possessed IBM trade secrets. The settlement terms were not disclosed. McIntyre ultimately began her Microsoft role in July 2018.
What happened between IBM and Microsoft’s incoming diversity chief?
IBM sued Lindsay-Rae McIntyre in federal court after she accepted Microsoft’s offer to become its chief diversity and inclusion officer. IBM alleged that the move violated a one-year non-compete agreement and could expose confidential information involving IBM’s diversity strategy, recruitment initiatives, hiring targets and related plans.
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A judge temporarily prevented McIntyre from starting at Microsoft while considering IBM’s request for a preliminary injunction. IBM and McIntyre settled on February 25, 2018. The terms were not publicly disclosed, and the case was dismissed with prejudice on March 8. Microsoft was not a defendant.
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The dispute ended through settlement, not a final decision establishing that IBM’s restrictions were valid or that McIntyre had misused confidential information.
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McIntyre’s background and Microsoft appointment
McIntyre had spent more than two decades at IBM in human-resources roles. Immediately before leaving, she was IBM’s vice president for executive succession and development and its chief diversity officer.
McIntyre’s court declaration said she accepted Microsoft’s offer on January 12, 2018. Microsoft announced the appointment on February 11, in a release dated February 12, saying she would report to Chief People Officer Kathleen Hogan. Microsoft described the job as covering internal diversity and inclusion initiatives and external partnerships across the technology sector.
Microsoft said McIntyre would join the company in July 2018, rather than beginning immediately after the hiring announcement.
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Read Microsoft’s announcement.
Why IBM sued
IBM filed International Business Machines Corporation v. Lindsay-Rae McIntyre, case number 7:18-cv-01210-VB, in the U.S. District Court for the Southern District of New York on February 12, 2018.
According to reporting on IBM’s allegations, the company argued that:
- McIntyre had agreed not to work for a competitor for one year;
- Microsoft was a competitor;
- her new responsibilities overlapped with her IBM work; and
- she had access to sensitive information about IBM’s diversity strategies, hiring goals, recruitment programs, technologies and innovations.
IBM’s position was that McIntyre was a senior executive whose knowledge could place IBM at a competitive disadvantage even if she did not intentionally disclose information. IBM also said it intended to enforce the restriction consistently with its treatment of other senior leaders.
These were IBM’s allegations, not findings made after a trial. The reported coverage is available from Reuters and Law360.
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McIntyre disputed IBM’s basis for blocking the move. In her declaration, she argued that IBM had no legitimate reason to prevent her from working at Microsoft and that her new role would not put IBM at a competitive disadvantage.
She also said she had not taken IBM documents containing confidential data. Her position distinguished between general professional experience in human resources and genuinely confidential company information. She argued that an existing confidentiality obligation would continue to protect IBM’s information even if she joined Microsoft.
Those statements were McIntyre’s claims and arguments, not findings by the court. Her declaration is available here.
The temporary restraining order was not a final ruling
The judge granted a temporary restraining order blocking McIntyre from beginning work at Microsoft while the court considered IBM’s request for a preliminary injunction. A preliminary-injunction hearing was scheduled for March 12, 2018.
The order was an interim measure. It did not finally determine that IBM’s allegations were true, that the non-compete was enforceable, or that McIntyre had taken or misused trade secrets. The case was resolved before the scheduled hearing.
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Settlement, dismissal and delayed start
The parties reached a settlement on February 25, 2018. Public reports did not disclose the financial or substantive terms; later academic discussion described the terms as sealed or otherwise unavailable publicly.
IBM said it was satisfied that the settlement protected its confidential information and diversity strategies. Public statements also indicated that McIntyre would not take on her Microsoft responsibilities until July. The case was formally dismissed with prejudice on March 8, 2018.
The public timeline suggests a practical compromise: IBM obtained a delay and assurances concerning its information, while McIntyre ultimately proceeded with the Microsoft job. That is an inference from the timing and public statements, not a disclosed term of the settlement.
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Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why the case was unusual
Non-compete disputes involving senior technology employees are not unusual. What made this case distinctive was the type of information IBM said could be competitively sensitive. The alleged information concerned diversity programs, workforce data, hiring targets, recruitment methods and inclusion strategy rather than a conventional product, engineering system or sales plan.
That raised a broader question: can a company’s diversity and inclusion strategy qualify as proprietary information capable of supporting a non-compete or trade-secret theory?
The case did not answer that question. The litigation ended before a merits ruling, and no publicly reported precedent established that diversity strategy is automatically a trade secret. A later Georgetown Law Journal analysis treated the dispute as an important example in the debate, not as controlling authority.
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The dispute involved two related but distinct concepts:
- Non-compete: IBM alleged that McIntyre could not work for a competitor for one year.
- Confidentiality: McIntyre argued that IBM’s confidential information remained protected even if she moved to Microsoft.
A confidentiality agreement generally focuses on preventing the use or disclosure of protected information. A non-compete seeks to restrict where or for whom a person may work for a specified period. The settlement did not publicly explain how these obligations were addressed.
What the case did—and did not—establish
- It did establish that IBM and McIntyre settled the dispute and that the case was dismissed with prejudice.
- It did not establish that McIntyre violated the non-compete.
- It did not establish that IBM’s non-compete was enforceable.
- It did not establish that McIntyre took or misused IBM trade secrets.
- It did not establish that diversity strategies are legally protected trade secrets.
- It did not create a nationwide rule about non-competes.
This was a New York federal case litigated in 2018. Non-compete law varies by jurisdiction and has changed over time, so the dispute should not be treated as a statement of current U.S. law generally.
Key dates
| Date | Event |
|---|---|
| January 12, 2018 | McIntyre said she accepted Microsoft’s offer. |
| February 11–12, 2018 | Microsoft announced her appointment; IBM filed suit on February 12. |
| February 2018 | The court temporarily barred McIntyre from starting at Microsoft. |
| February 25, 2018 | IBM and McIntyre reached a settlement. |
| March 8, 2018 | The case was dismissed with prejudice. |
| July 2018 | McIntyre began her Microsoft role. |
Bottom line
IBM’s lawsuit delayed Lindsay-Rae McIntyre’s move to Microsoft but did not produce a final ruling against her or a legal precedent on diversity-related trade secrets. The parties settled privately, the case was dismissed with prejudice, and McIntyre ultimately joined Microsoft in July 2018. The exact restrictions and protections agreed to by IBM and McIntyre remain undisclosed.
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