Nykaa Sues Former CBO Gopal Asthana for Breach of Confidentiality

Nykaa, the popular beauty and fashion retailer, has filed a lawsuit against its former Chief Business Officer (CBO), Gopal Asthana, who currently heads Tata Cliq’s fashion business.

The lawsuit alleges a breach of confidentiality, misappropriation of proprietary data, and attempts to harm Nykaa’s business operations.

Accusations Against Gopal Asthana:

Nykaa accuses Gopal Asthana of approaching several former colleagues at Nykaa, who had previously reported to him, with job offers at Tata Cliq.

Over the past year, several of these employees have reportedly transitioned to Tata Cliq. According to Nykaa, this action was a direct attempt to weaken its workforce and disrupt its operations.

Nykaa Seeks Compensation:

In its legal complaint, Nykaa highlights the substantial remuneration and long-term incentives, including stock options, that Asthana received during his tenure.

The company is now seeking a refund of approximately ₹19 crore in employee stock option benefits that Asthana received, along with an additional ₹5 crore for loss of goodwill caused by his alleged actions.

Following the lawsuit, the high court issued an interim order, instructing Gopal Asthana to refrain from hiring more executives from Nykaa for Tata Cliq. Asthana joined Tata Cliq in June 2023, just three months after he departed from Nykaa.

Asthana’s Response:

Gopal Asthana has denied any wrongdoing. In a statement to the Economic Times, he remarked, “The allegations are incorrect and will be addressed in the arbitration process.

Since the matter is sub-judice, I am unable to comment further. This issue is between my former employer and me, and Tata Cliq, my current employer, is not involved in the matter.”