NetApp claims ex-CTO built a secret cloud platform then sold it to VAST Data
Summary
NetApp has filed a federal lawsuit alleging its former senior vice-president and CTO, Jón Thorgrímur Stefánsson, secretly developed a competing cloud control platform while still employed, recruited colleagues, and then sold the resulting startup, Red Stapler, to rival VAST Data in September 2025. The complaint (filed 6 November in the US District Court for the Middle District of Florida) claims Stefánsson had privileged access to NetApp’s cloud control plane and other sensitive IP, breached his employment agreement, and moved technology and personnel toward a competitor.
Key Points
- NetApp alleges Stefánsson used his role and wide-ranging access to develop a competing cloud control platform while still employed.
- He left NetApp on 27 June 2025, incorporated Red Stapler within a week, and sold it to VAST Data ten weeks later.
- NetApp points to text messages suggesting pre-arranged employment with VAST, messages about poaching staff, and a shared GitHub account named “redstapler-is” as evidence work began while he was still on payroll.
- The company obtained a temporary restraining order barring Stefánsson from using NetApp proprietary material, soliciting partners, or destroying evidence; that order expires 26 November unless extended to a preliminary injunction.
- NetApp says the compressed timeline and the alleged use of trade secrets could shortcut a competitor’s product roadmap and harm partnerships and years of R&D investment.
Content summary
The lawsuit contends Stefánsson played a central role in NetApp’s cloud data management stack and therefore had access to its most sensitive innovations and partner information. NetApp says his actions violated non-compete, non-solicitation and confidentiality clauses in his employment agreement. After discovering alleged evidence of off‑books work and recruitment, NetApp sent cease-and-desist letters; Stefánsson left the US for Iceland, and NetApp sought emergency court relief. A judge granted a temporary restraining order with multiple restrictions, and NetApp is seeking to convert that into a preliminary injunction to preserve the status quo during litigation.
The filings frame the core of NetApp’s case around the speed of Red Stapler’s creation and sale, arguing it is implausible the startup built a competitive cloud control plane in the ten weeks between Stefánsson’s resignation and the VAST acquisition. The complaint highlights three main evidentiary strands: communications suggesting pre-arranged plans with VAST, messages about hiring NetApp staff, and a GitHub account indicating pre-departure development activity.
Context and relevance
This dispute sits at the intersection of cloud infrastructure competition and trade secret law. For storage and cloud vendors, control-plane technology and hyperscaler integrations are strategic assets; alleged misappropriation could materially accelerate a rival’s product timeline. The case also highlights the risks companies face when senior engineers with deep system knowledge join or form startups that compete directly with their employer.
Beyond NetApp and VAST, the outcome matters to partners and hyperscalers who rely on vendor integrity when integrating storage platforms. If NetApp’s claims hold, vendors may tighten access controls, change hiring practices, and pursue swifter legal remedies when former executives jump to competitors.
Why should I read this?
Because it’s a juicy mix of corporate drama and real tech risk — a CTO accused of quietly building a rival while on the payroll, then selling it to a direct competitor. If you care about cloud control planes, data‑storage competition, IP protection or hiring senior engineers, this one’s worth a quick read: it could change how vendors guard trade secrets and how competitors shop for acquisition targets.
Source
Source: https://go.theregister.com/feed/www.theregister.com/2025/11/18/netapp_cto_lawsuit/