Arhaus Sues RH and Executive Over Trade Secret Breach

Arhaus, a luxury furniture manufacturer based in Ohio, has filed a lawsuit against Restoration Hardware (RH) and its Co-Chief Merchandising and Creative Officer, Lisa Chi, over allegations of trade secret violations. The civil complaint, submitted on July 24 to the U.S. District Court in Northern California, accuses Chi of breaching a confidentiality agreement signed in 2022 and sharing proprietary information with RH after her appointment in 2025. According to the lawsuit, during her tenure as Chief Merchandising Officer at Arhaus, Chi had access to sensitive trade secrets and confidential strategies, which she allegedly transmitted to her personal email and Google storage devices, including detailed plans covering sales, inventory, and marketing strategies. The complaint further claims that Chi and RH CEO Gary Friedman held discussions concerning confidential Arhaus information, including trade secrets. The lawsuit alleges that, in preparation for her transition from Arhaus to RH, Chi met extensively with Friedman to discuss her potential role at RH, a key competitor. It is alleged that during these discussions, trade secrets from Arhaus were shared and are now being reflected ...