VMware takes legal action against Nutanix CEO Rajiv Ramaswami
Cloud solution provider VMware has filed a lawsuit against its former COO Rajiv Ramaswami for breach of legal contract and duty obligations to VMware. Ramaswami became the CEO of Nutanix just two days after quitting VMware in December 2020. VMware has accused him of secretly meeting with the board, CFO and other senior executives at Nutanix while he was still working with VMware.
“For at least two months before resigning from the company, at the same time he was working with senior leadership to shape VMware’s key strategic vision and direction, Mr. Ramaswami also was secretly meeting with at least the CEO, CFO, and apparently the entire Board of Directors of Nutanix, Inc. to become Nutanix’s Chief Executive Officer,” VMware told the media in a statement.
In its defence, Nutanix CEO said that he will fight the allegations in court and in a statement said, “It is disappointing to see VMware’s management sue him just because he chose to pursue an opportunity to become a public company CEO.” But VMware feels otherwise and thinks that it is a clear case of conflict of interest. It also said that before initiating legal action, VMware tried to look at an amicable solution which Ramaswami and Nutanix refused to participate in.
“Mr. Ramaswami demonstrated poor judgement and had a clear and extended period of conflict of interest. He should have disclosed this conflict of interest to VMware so that the company could have taken steps to protect itself. But he did not notify VMware, and thus deprived the company of the ability to do so by concealing his Nutanix-related activities,” added VMware.
“For at least two months before resigning from the company, at the same time he was working with senior leadership to shape VMware’s key strategic vision and direction, Mr. Ramaswami also was secretly meeting with at least the CEO, CFO, and apparently the entire Board of Directors of Nutanix, Inc. to become Nutanix’s Chief Executive Officer,” VMware told the media in a statement.
In its defence, Nutanix CEO said that he will fight the allegations in court and in a statement said, “It is disappointing to see VMware’s management sue him just because he chose to pursue an opportunity to become a public company CEO.” But VMware feels otherwise and thinks that it is a clear case of conflict of interest. It also said that before initiating legal action, VMware tried to look at an amicable solution which Ramaswami and Nutanix refused to participate in.
“Mr. Ramaswami demonstrated poor judgement and had a clear and extended period of conflict of interest. He should have disclosed this conflict of interest to VMware so that the company could have taken steps to protect itself. But he did not notify VMware, and thus deprived the company of the ability to do so by concealing his Nutanix-related activities,” added VMware.
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