Citibank faces a lawsuit from former managing director Kathleen Martin, who alleges that the bank fired her in retaliation for refusing to mislead regulators about its risk management practices. Citibank, the third-largest bank in the U.S., contends that Martin was terminated in November due to a lack of leadership and engagement skills required for her interim role as data transformation chair. The bank denies Martin’s allegations, asserting that even if her claims were true, her whistleblowing activities are not protected under the federal Sarbanes-Oxley governance law.
Martin strongly rejects Citibank’s defense, arguing that it is astonishing for the bank to claim it can legally fire an employee for reporting false statements to regulators.
On June 18, Citibank CEO Jane Fraser informed investors that the bank is intensifying efforts to modernize its automation and data reporting to address regulatory concerns, admitting that progress has been too slow in some areas.
Martin, who was hired in 2021 to address Citibank’s unlawful data maintenance practices and mitigate further legal liability, claims that Chief Operating Officer Anand Selva pressured her to falsify and conceal crucial information from the Office of the Comptroller of the Currency (OCC). According to Martin, Selva wanted to hide the data to avoid making the bank look bad. Martin is seeking reinstatement, back pay, benefits, and damages for reputational and emotional harm.
This lawsuit is an important demonstration of how employees can pursue justice after facing retaliation for doing the right thing. While the facts of every genuine wrongful termination and retaliation case are different, the basics are still the same: the employer unlawfully fired the worker because they attempted to follow the law. Martin’s case shows that it is both possible and admirable to hold companies accountable for these actions. Let’s break down how you can do the same.
Understanding Whistleblower Retaliation and Wrongful Termination Claims
Whistleblower retaliation and wrongful termination claims arise when an employee is fired for engaging in protected reporting activities. These activities typically involve reporting illegal, unethical, or unsafe practices within a company to authorities or internal management.
However, not every termination is unlawful, even if the employee has made whistleblowing reports. Here are the grounds for wrongful termination in California:
Violation of Public Policy
An employer cannot terminate an employee for reasons that violate public policy. This includes:
- Reporting illegal activities.
- Refusing to engage in unlawful acts.
- Exercising a legal right (e.g., taking family or medical leave).
- Performing a public duty (e.g., serving on a jury).
Breach of Contract
If an employment contract outlines specific terms for termination, firing an employee outside of these terms can be grounds for a wrongful termination claim. This includes:
- Terminating an employee before the end of a contract period without just cause.
- Violating terms in an implied contract, such as an employee handbook or verbal agreements.
Discrimination
Terminating an employee based on protected characteristics is illegal and constitutes wrongful termination. Protected characteristics include:
- Race or ethnicity.
- Gender or sex.
- Age.
- Religion.
- Disability.
- National origin.
- Sexual orientation.
Retaliation
Employees cannot be terminated in retaliation for engaging in legally protected activities, such as:
- Filing a complaint or lawsuit against the employer.
- Participating in an investigation against the employer.
- Reporting harassment or discrimination.
Violation of public policy and retaliation are most likely to overlap with whistleblower cases. If so, the employee may be eligible to file a lawsuit against the employer for both claims.
Demonstrating a Whistleblowing Retaliation Claim in California
To establish a whistleblower retaliation claim, the employee must have engaged in a protected activity. Some of the most common protected activities include:
- Reporting violations of laws or regulations to a government agency or internal compliance department.
- Participating in an investigation, hearing, or legal proceeding regarding the employer’s misconduct.
- Refusing to participate in illegal activities at the request of the employer.
In addition, the employer must have taken adverse action against the employee in response to their protected activity. Adverse actions include firing or demoting the worker, cutting their pay or hours, giving unjustified negative performance reviews, harassing them, or creating a hostile work environment.
Finally, there must be a direct link between the protected activity and the adverse action. The employee must demonstrate that the adverse action was taken because of their whistleblowing activities. This can be shown through:
- Timing of the adverse action (e.g., shortly after the protected activity).
- Statements or actions by supervisors indicating a retaliatory motive.
- Discrepancies between the stated reason for the adverse action and the employee’s actual performance or behavior.
If these three elements are present, it is substantially more likely that an employee can make a successful retaliation claim. This is due to California’s Equal Pay and Anti-Retaliation Protection Act. As of 2024, the state has implemented a rebuttable assumption of retaliation – in other words, the employer must prove that it did not retaliate rather than forcing the employee to prove that it did.
Steps to Take If You’re Fired for Protected Reporting Activity
Being fired for doing the right thing may be incredibly stressful, but it is important to take action immediately. Here’s what you can do to ensure you can pursue justice for your wrongful termination in retaliation:
- Document Everything: Keep detailed records of the protected activities, communications with supervisors, and any adverse actions taken by the employer.
- Report Internally: If possible, report the retaliation or wrongful termination to higher management or the human resources department.
- File a Complaint: Depending on the nature of the protected activity, file a complaint with the appropriate government agency, such as the Occupational Safety and Health Administration (OSHA), for safety violations or the Securities and Exchange Commission (SEC) for financial misconduct.
- Seek Legal Advice: Consult with an attorney specializing in employment law to evaluate your case and determine the best course of action. Legal professionals can provide guidance on filing a lawsuit and representing your interests in court.
If you believe you have been wrongfully terminated or retaliated against for whistleblowing, contact the Law Offices of Todd M. Friedman, P.C. for expert legal advice and representation. Our experienced attorneys are dedicated to protecting your rights and ensuring that justice is served.
