TORONTO, Aug 12 (Reuters) - Royal Bank of Canada's ( RY )
former CFO Nadine Ahn has filed a wrongful-termination
lawsuit against the bank, and alleged that "gender-based
stereotyping" was at play in her dismissal.
In April, RBC, Canada's biggest bank, said it had terminated
Ahn after its investigation found she was in an undisclosed
close personal relationship with another executive that led to
preferential treatment of the executive, including promotion and
compensation increases.
Ahn, 53, said in a lawsuit filed in the Ontario Superior
Court of Justice on Aug. 8 that the bank's allegations are
"patently false" and her successes, career, and reputation were
destroyed in an instant by the bank.
She has sued RBC for nearly C$50 million ($36.38 million).
"(RBC) failed to provide her with a fair opportunity to
respond to the allegations, and the bank was, at least in part,
motivated by stereotypical assumptions concerning friendships
between women and men," Ahn's lawyer wrote in the lawsuit.
Ahn alleged in the lawsuit that she was "ambushed" by RBC's
external counsel on April 5 and questioned for two hours. She
added that the bank seized her laptop and her work and personal
cellphones.
The lawsuit stated that RBC did not provide Ahn with a copy
of a co-worker's complaint or the particulars of the allegations
against her. It said RBC did not allow Ahn to postpone the
meeting to obtain legal advice.
Ahn also alleged RBC had already decided to replace her at
the time she was questioned, as it announced her dismissal and
the appointment of Katherine Gibson as interim CFO the same
evening.
In a statement, RBC said Ahn's claims are without merit, and
that it would vigorously defend against them in court.
RBC said Ahn and the co-worker, Ken Mason, had engaged in an
undisclosed close personal relationship leading to preferential
treatment for Mason, including promotion to vice president.
"The facts are very clear that there was a significant
breach of our code of conduct based on the irrefutable evidence
collected during the investigation," RBC said in its statement.
Mason is suing the bank for about C$20 million for wrongful
termination and denies he and Ahn had a close personal
relationship.
"RBC as a whole has been an environment for 'old-boys-club'
cronyism," his lawsuit, also filed Aug. 8, said.
RBC said that the claims in Mason's suit are also without
merit and that it would defend against them.