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Edtech company suspends chief executive over alleged attempt to divert business

Ian Gaughran has concerns about the ‘financial viability’ of Olive companies

Elevated view of students sitting and learning in computer room
Olive For Education supplies secondary schools with tablets and laptops. Photograph: Getty Images

An Irish technology company that supplies schools with tablets and laptops has suspended its chief executive over allegations that he leaked confidential information and sought to move its customers and clients to a rival business.

On Friday, Judge Brian Cregan heard that “inflammatory remarks” had been made in an affidavit filed by Ian Gaughran, the chief executive of Olive For Education (OFE), who has been suspended since January.

Gaughran’s barrister said his client had concerns about the “financial viability” of the Olive Group of companies which is led by entrepreneur Brendan Kavanagh.

Among the high-profile companies in the Olive Group is Grinds 360, a provider of online courses for secondary students, in which rugby stars Brian O’Driscoll and Caelan Doris are investors.

On January 16th, Upskill Online, which trades as Olive Media, sought an ex parte injunction against Gaughran and Erik Jentetics, the chief executive of Grafton Technology, who is also listed as chief operating officer of OFE. The OFE business supplies computers to teachers and children in more than 70 secondary schools.

The Olive Media application sought an order preventing the defendants from using, disclosing, copying or destroying OFE’s confidential information, including customer details, strategies or pricing information. The application sought to prevent the two executives from contacting, soliciting or dealing with OFE’s customers or potential customers. It also sought to bar the pair from inducing OFE employees or contractors to leave their jobs.

Gaughran and Jentetics, who both deny any wrongdoing, have since given undertakings to the court in advance of an interim hearing.

Kavanagh has complained that Gaughran and Jentetics engaged in a plan to buy a rival business and divert OFE’s staff and customers to a new enterprise. He also complains that Gaughran and Jentetics breached their duties to Olive by trying to set up a rival business to Grinds 360 with two Rockwell College students who developed an AI-powered app called Studytok.

Gaughran asserts that he was recruited by Kavanagh from his senior role in Microsoft on terms under which he would own 60 per cent of OFE’s shares. He claims Kavanagh failed to honour this deal.

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Jentetics has said he provided services for OFE through his company Grafton Technology but was never paid. He also claims that Grinds 360 has outstanding debts owed to Grafton Digital.

Jentetics, who is 25, was listed as one of the top 30 entrepreneurs under 30 in the Sunday Independent when he was just 21.

The judge set March 13th as the hearing date for the injunction application.

Neil Steen, barrister for Olive Media, said his side needed time to respond to inflammatory remarks made in a defence affidavit.

Roland Rowan, barrister for Gaughran, said his client had concerns about the financial viability of Olive companies and was considering bringing an application for Olive Media to lodge security for costs. Rowan said Gaughran and his wife, who works for another Olive company, had received notices from their pension providers saying their jobs had ended. It appeared Gaughran was dismissed while the injunction case was “dragging on”.

Steen said his instruction is that Gaughran is still an employee.

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Julia Lawlor, barrister for Jentetics, said he was bound by “onerous undertakings” since January despite not being an employee. She said her client was never paid for his company’s services.

Court records show that Jentetics’s firm Grafton Digital filed a High Court debt claim against Upskill Online on February 19th.

On Wednesday, Vin McCaffrey, an American entrepreneur who is chief executive of another Olive company, Tactix AI, filed a High Court action against Kavanagh and two of his companies, O.Labs Hub and Tactix XR.

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Mark Tighe

Mark Tighe is Senior Investigative Reporter at The Irish Times