Arhaus Sues RH and Executive Over Alleged Trade Secret Misappropriation

High-end furniture manufacturer Arhaus has initiated legal action against Restoration Hardware (RH) and its Co-Chief Merchandising and Creative Officer, Lisa Chi, accusing them of unlawfully sharing trade secrets. The lawsuit, filed on July 24 in the U.S. District Court for the Northern District of California, claims that Chi breached a confidentiality agreement and transferred proprietary information to RH upon her recruitment in 2025. According to court documents, during her role as Chief Merchandising Officer, Chi had access to sensitive information about Arhaus's sales strategies, inventory, and product plans. The complaint alleges she routinely emailed confidential documents, including her company's four-year strategic plan, to her personal email and other cloud storage accounts. It also states that Chi and RH CEO Gary Friedman discussed confidential data, which allegedly influenced RH’s product development and marketing strategies. The lawsuit further states that, in preparation for her transition to RH, Chi met with Friedman to discuss her potential move and the confidential information she could bring. It claims that since her hiring, RH's product lines and marketing mate...