(Toronto) A former chief financial officer of the Royal Bank of Canada (RBC) is suing the bank for nearly $50 million for wrongful dismissal.
Nadine Ahn said in a lawsuit that RBC’s allegations that she had an “undisclosed close personal relationship” with another employee who allegedly benefited from preferential treatment were unfounded.
In the lawsuit filed in the Ontario Superior Court of Justice on August 8, Mr.me Ahn denies giving preferential treatment to colleague Ken Mason and says RBC’s decision to fire her on April 5 was partly tainted by gender stereotypes about friendships between women and men.
The lawsuit alleges that there is no evidence to support the allegations against Mr.me Ahn, that his dismissal came after a flawed and incomplete investigation process and that it had a devastating effect on his reputation.
RBC spokeswoman Gillian McArdle said in a statement that the allegations are without merit and the bank will vigorously defend itself in court.
We conducted a thorough investigation and review by outside legal counsel, and the facts are very clear: there was a significant violation of our Code of Conduct, based on the compelling evidence gathered during the investigation.
Gillian McArdle, RBC spokesperson
While Mme Ahn claims in the complaint that the bank rushed to fire her and appoint a replacement, M.me McArdle said that given the complainant’s senior position, RBC had an obligation to act quickly and publicly disclose what she had done.
The $48.9 million lawsuit, first reported by Bloomberg, includes claims for wrongful termination damages, defamation damages and other claims.
Mr. Mason, the colleague with whom Mme Ahn, who allegedly had a close personal relationship, was also fired on April 5.
He filed a $20.3 million lawsuit on grounds similar to those raised by his former boss, including that his firing was based on false rumors, speculation and “discriminatory stereotypes based on heteronormative and sexist assumptions about working relationships between men and women.”
Mr Mason said the bank’s code of conduct on close personal relationships was vague, creating the potential for subjective and unfair enforcement. Excerpts from the code cited in his complaint indicate that such relationships could be anything from family to intimate relationships to close friends.
Even though he and Mme Ahn were trusted friends and colleagues, he denies they had a relationship that went against the code.
M’s complaintme Ahn claims the bank’s way of announcing an “undisclosed personal relationship” spread a rumor that she and Mr. Mason, both of whom are married with children by their statements, were having an affair.
“This statement is false and RBC knew, or should have known, that it would publicly humiliate Mr.me Ahn and would cause extreme harm to his reputation and mental distress.”