This week in suits by suits and other related items of interest:
- The EEOC has brought a lawsuit against Pace Solano -- a firm that provides services to disabled adults -- on behalf of a woman who claims that her hiring offer was rescinded after Pace Solano learned that she has partial paralysis in one of her hands.
- Four former sales representatives have brought a federal class action lawsuit against New York-based drug manufacturer Forest Laboratories, Inc., seeking more than $100 million in damages. The lawsuit alleges that Forest Labs engaged in pervasive sexual discrimination against women, denying female employees -- particularly those who became pregnant or had young children at home -- the same pay, bonuses, and promotions as its male employees.
- Mary Ruotolo, the former executive director of a New York chapter of the Ronald McDonald House Charities, has sued her former employer under a New Jersey state whistleblower statute, alleging retaliatory termination after she began raising concerns about her chapter's financial condition. Ms. Ruotolo's suit also alleges fraudulent inducement in connection with her hiring.
- In a case we continue to monitor, Law360 (membership required) reports that two former ArthroCare Corp. executives moved to dismiss a lawsuit by the SEC demanding repayment of bonuses and stock profits under section 304 of the Sarbanes-Oxley Act, arguing that the SEC's interpretation -- which would seek to clawback bonuses from executives even where those individuals have not been specifically charged with any wrongdoing -- would violate constitutional principles of fairness and due process. A separate motion sought to declare Section 304 "void for vagueness."
- Law360 also reports that the trustee overseeing the Radar Networks, Inc. bankruptcy has reached a stipulation permitting a lawsuit to go forward against outgoing Yahoo, Inc. CEO Ross Levinsohn -- a former Radar director -- and other former Radar insiders, alleging fraud and conversion of approximately $3 million in Radar assets. The trustee concluded that permitting the lawsuit would be "in the best interests of the estate" and recommended approval by the bankruptcy court. Levinsohn replaced Scott Thompson as CEO of Yahoo! after Thompson was forced to resign amidst allegations of resume padding, as we discussed previously.
- Speaking of Yahoo!, Elizabeth Dilts of Law.com's Corporation Counsel has written an interesting article discussing non-compete agreements in light of Marissa Mayer's recent decision to leave Google, Inc. to become CEO at Yahoo! (following Levinsohn and Thompson). Yahoo! is, of course, one of Google's chief competitors.