NetApp sues former CTO for alleged data breach

"NetApp has filed a federal lawsuit against former Chief Technology Officer Jón Thorgrímur Stefánsson. The company alleges that during his employment, he used confidential information to establish a competing startup, which was acquired by rival VAST Data shortly after his departure. According to NetApp, the fact that VAST Data bought the startup Red Stapler shortly after its founding does not change the fact that VAST is not accused of involvement. The claims focus exclusively on the actions of Stefánsson and a few former colleagues."

"Stefánsson worked at NetApp for eight years. His role as CTO and senior vice president gave him access to strategic information about NetApp's cloud platform, product architectures, and collaborations with major cloud providers. NetApp alleges that he used that knowledge for his own business. Early development activity on GitHub According to the petition, Stefánsson began setting up Red Stapler while he was still employed by NetApp. He did this together with a number of current and former NetApp employees."

"Red Stapler officially launched in July. It was quietly expanded. Less than ten weeks later, it was acquired by VAST Data. According to NetApp, Red Stapler's technology bears similarities to its own Service Delivery Engine. This is a system that serves as an orchestration and integration layer with public cloud platforms. NetApp emphasizes that it is virtually impossible for a new team to have developed this technology independently in such a short period of time."

NetApp alleges that its former CTO and senior vice president, Jón Thorgrímur Stefánsson, used confidential strategic information to create a competing startup, Red Stapler, while still employed. Internal communications and GitHub activity purportedly show development occurring before his June 27, 2025 departure. Red Stapler launched in July and was acquired by VAST Data fewer than ten weeks later. NetApp claims Red Stapler's technology closely mirrors its Service Delivery Engine, an orchestration and integration layer for public clouds, and contends that independent development in such a short period was virtually impossible. The legal claims target Stefánsson and several former colleagues under a signed PIIA.

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