High-Stakes Legal Battle Looms As RBC's Former CFO Sues Bank Over Wrongful Termination: Report

Nadine Ahn, former CFO of Royal Bank of Canada RY, reportedly filed a wrongful termination lawsuit, alleging her dismissal was influenced by “gender-based stereotyping.”

Notably, in April, Royal Bank Of Canada terminated Ahn after an investigation revealed she had an undisclosed close personal relationship with another executive, which led to preferential treatment, including promotions and salary increases for the executive.

Royal Bank Of Canada said Ahn’s claims are without merit and it would vigorously defend against them in court, reported Reuters.

RBC said, “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,” which the report quoted.

In a lawsuit filed on August 8 with the Ontario Superior Court, Ahn, 53, argued that RBC’s claims are “patently false” and that the bank’s actions have irreparably harmed her career and reputation.

She is seeking nearly C$50 million ($36.38 million) in damages from RBC. Also, Ken Mason, who denies having a close personal relationship with Ahn, is suing RBC for approximately C$20 million for wrongful termination, per the report.

Ahn’s lawyer wrote in the lawsuit that, “(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.”

The report noted Ahn further claimed she was “ambushed” by RBC’s external counsel on April 5, interrogated for two hours, and had her laptop and both work and personal cellphones confiscated.

The lawsuit claims RBC did not provide Ahn with a copy of the co-worker’s complaint or details of the allegations against her and refused to let her postpone the meeting to seek legal advice.

Ahn also claimed that RBC had already decided to replace her, as it announced her dismissal and Katherine Gibson’s appointment as interim CFO on the same evening.

Price Action: RY traded higher by 0.26% at $108.54 at the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Shutterstock

Read Next:

• Shop Smart: Visa And Amazon Bring Flexible Payment Plans To Canadian Shoppers