TORONTO (Reuters) - Royal Bank of Canada's 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.