Corrupt Corporate Cultures That Became A Company’s Undoing

While allegations of Activision’s discriminatory and harassing culture have been in the news lately, it is of course far from being the only company scandalized by such reports. Let’s take a look at how some other companies have been impacted by similar allegations….

Wynn Resorts

Gambling industry tycoon Steve Wynn lost his job, running the company that bore his name, after the Wall Street Journal broke the news that he had a long history of sexual misconduct allegations. They now face a class-action lawsuit for securities fraud for having made material misrepresentations to investors regarding the allegations. In addition to the lawsuits, the company has had to pay millions in penalties to state gaming agencies.

Signet Jewelers

After an explosive expose in the Washington Post and elsewhere revealed a pattern of gross sexual harassment and other malfeasance at Signet Jewelers, the parent company of shopping mall stores such as Zales and Kay Jewelers, the CEO—who was alleged to be directly participating in the malfeasance—left the firm. The board was reconfigured to achieve gender parity, and the company had to agree to a $240 million settlement of a related shareholders’ derivative lawsuit.

L Brands

Following allegations of rampant sexual harassment and a toxic culture at L Brands, the parent company of Victoria’s Secret and Bath & Body Works, this past July, the company agreed to settle shareholder lawsuits by investing $90 million in anti-harassment training and discipline practices, ending the company’s practice of enforcing non-disclosure agreements against sexual harassment claim settlements, and other company reforms.

Allegations of sexual harassment can have a huge impact. But to be successful requires a careful litigation strategy. You need attorneys who can help you prepare the strongest case. Experienced attorneys, such as those at Silver Law Group, can do just that by helping develop an action plan that includes potential SEC or FINRA actions. For a free, confidential consultation, contact us or call today at (800) 975-4345.