Former RBC CFO Sues Bank For $36 Million Over Wrongful Termination, Citing Gender Stereotypes

Former Royal Bank of Canada CFO Nadine Ahn has filed a wrongful-termination lawsuit against the bank and claimed that “gender-based stereotypes” were at play in her dismissal.

In April, RBC, Canada’s largest bank, said it terminated Ahn after its investigation found she had an undisclosed close personal relationship with another executive that led to preferential treatment of the executive , including promotion and increased compensation.

Ahn, 53, said in a lawsuit filed in Ontario Superior Court on Aug. 8 that the bank’s allegations were “patently false” and that her successes, career and reputation were destroyed in a moment by the bank.

She sued RBC for nearly US$50 million ($36.38 million).

“(RBC) failed to give her a fair opportunity to respond to the allegations, and the bank was motivated, at least in part, by stereotypical assumptions about friendships between women and men,” Ahn’s attorney wrote in the lawsuit.

Ahn claimed in the lawsuit that she was “shot” by RBC’s outside counsel on April 5 and interrogated for two hours. She added that the bank confiscated her laptop and work and personal mobile phones.

The suit alleged that RBC did not provide Ahn with a copy of a colleague’s complaint or the details of the allegations against her. It said RBC did not allow Ahn to postpone the meeting to obtain legal advice.

Ahn also claimed that RBC had already decided to replace her by the time she was questioned, as it announced her dismissal and the appointment of Katherine Gibson as interim CFO on the same evening.

In a statement, RBC said Ahn’s claims are without merit and will vigorously defend against them in court.

RBC said Ahn and co-worker Ken Mason engaged in an undisclosed close personal relationship that resulted in preferential treatment for Mason, including a promotion to vice president.

“The facts are abundantly 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 that he and Ahn had a close personal relationship.

“RBC as a whole was an ‘old boys’ club’ environment,” said his lawsuit, also filed Aug. 8.

RBC said the claims in Mason’s lawsuit are also without merit and that it will defend against them.

(Reporting by Balu in Toronto; Editing by Rod Nickel)