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Project Manager hanging out with competition outside of work

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A few months ago the branch manager of our construction business left the company, started his own competing company, stole company assets, and took most of our employees with him. We hired a new project manager and recently I ran into him having dinner and drinks with the old branch manager (now the competition). I realize I can't tell him who he can be friends with but this still seems extremely innapropriate to me. He knows plenty of things about the company and the jobs we are bidding on that could give ammunition to the competition, and I know that they weren't friends prior to him being hired as our project manager. In addition to this, this project manager frequently has drinks with some of the employees outside of work. I feel like being drinking buddies would blur the lines between boss and employee. I would love some advice or insights on what to do in this situation.

I didn't find the right solution from the internet.

https://www.smallbusinessforums. ... -Project-Manager-ha

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