The Termination
In January 2013, Bank of America fired Salma Aghmane, a top-performing vice president, claiming it had “conclusive” evidence of wrongdoing. The bank immediately reported her to Early Warning Services (EWS), a database of bank employees fired for knowingly causing financial loss.
The damage was swift. Chase Bank had quickly offered Ms. Aghmane an even better position, but withdrew the offer after learning she was on the EWS blacklist. She was out of work for an extended period and eventually had to accept a lower-level job at a smaller regional bank.
What Really Happened
The so-called fraud was a family dispute. Ms. Aghmane had loaned her teenage cousin, a customer at the bank, about $12,000 for living expenses. The cousin authorized her to withdraw funds to repay the loan, then later told bank investigators the withdrawals weren’t authorized.
Ms. Aghmane explained the situation and provided documents showing the debt. The cousin declined to press charges or identify her in writing. The bank never followed up with either of them.
The Appeal
After two years of litigation, the U.S. District Court for the Northern District of California granted Bank of America partial summary judgment, essentially ending the case. Aiman-Smith & Marcy appealed, calling the charges “an ambush.”
In May 2017, the Ninth Circuit Court of Appeals reversed. It found that a reasonable jury could conclude Bank of America knew, or should have known, that it had only a family dispute and no “conclusive evidence” of a crime.
The Verdict
The case went to trial in Oakland in 2018. In his closing argument, Randall Aiman-Smith called Bank of America a “great big barrel-chested bully” whose “grossly inadequate” investigation blacklisted Ms. Aghmane from “the major leagues of banking.”
The jury found the bank liable for defamation, blacklisting, and negligent infliction of emotional distress, and awarded Ms. Aghmane more than half a million dollars. It also found that the bank acted with malice, making it liable for punitive damages. The night before the jury was to decide that amount, the case settled for a confidential sum.
Why It Matters
California law protects workers from being blacklisted. An employer can’t label someone a criminal without a fair investigation and then keep them from working in their field.
Wrongly accused or blacklisted by an employer? Contact Aiman-Smith & Marcy for a free consultation at (510) 760-7005.
Source: Aghmane v. Bank of America, N.A. (9th Cir. 2017), No. 15-15482.