In May 2013, Aiman-Smith & Marcy announced it would take legal action on behalf of iGate employee Araceli Roiz against the company’s former CEO, Phaneesh Murthy, and against iGate itself.
Background
Earlier that week, iGate had fired Murthy for failing to report a relationship with Ms. Roiz, the company’s head of investor relations. Her direct supervisor, the CFO, was based in India, so she reported to Murthy day to day.
The Allegations
According to ASM’s statement, Ms. Roiz became pregnant, and Murthy pressured her to end the pregnancy. When she refused, he allegedly tried to get her to leave the company quietly and keep the relationship secret. Murthy called the claims an attempt at extortion. ASM responded that his comments were defamatory and an effort to blame the victim.
When the Company Is Liable
ASM explained that under California law, because Murthy was an officer and director of iGate, his actions were legally the company’s actions. The firm also questioned whether iGate had done enough to oversee him, given his history. ASM said it would wait for the results of an outside investigation iGate had ordered before suing the company.
A Familiar Pattern
ASM had previously represented two women, Reka Maximovitch and Jennifer Griffith, in earlier harassment lawsuits against Murthy while he was at Infosys. Infosys paid $3 million to settle Ms. Maximovitch’s case, and Murthy paid Ms. Griffith $800,000 to settle her claim.
Why It Matters
Executives are not above the law. When a senior officer harasses an employee, the company can be held responsible too.
Harassed by a supervisor or executive at work? Contact Aiman-Smith & Marcy for a free consultation at (510) 760-7005.
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