California prohibits non-compete agreements.
Two legal experts say VMware’s lawsuit against Nutanix CEO Rajiv Ramaswami has little weight because of California’s rules for hiring competitors.
Ramaswami is the former chief operating officer of VMware. The lawsuit alleges material and persistent violations of its legal and contractual obligations and obligations to VMware.
The lawsuit was filed with the California Supreme Court, Santa Clara County.
VMware had to file its lawsuit in California because it is based there. But legal experts say filing in California weakens the case.
Nutanix named Ramaswami as President and CEO last month. According to VMware, Ramaswami has “failed to meet his fiduciary and contractual obligations to VMware”.
VMware also claims secret meetings between Ramaswami and Nutanix’s CEO, CFO – and apparently the entire board of directors, to become that company’s CEO.