Regulation Companies
Former Proskauer COO withheld raises to create resentment, spur strikes to new agency, amended go well with says
Former Proskauer Rose chief working officer Jonathan O’Brien is accused in a revised lawsuit of withholding raises and promotions for key Proskauer Rose staff to spur resentment and make them amenable to becoming a member of his would-be new agency, Paul Hastings.
O’Brien was initially accused of downloading delicate Proskauer Rose info on a thumb drive and printing a “black e book binder” exhibiting accomplice compensation and efficiency, in addition to allocation of the agency’s income. He had claimed that he took the knowledge so he may work whereas on trip in Africa.
The revised go well with contains these allegations whereas including extra accusations.
Law.com, Reuters and Bloomberg Law have protection of the May 8 amended complaint, which was filed in U.S. District Courtroom for the Southern District of New York.
The revised go well with stated O’Brien deleted “substantial numbers” of textual content message, emails and different knowledge after the preliminary criticism was filed.
Paul Hastings withdrew its job offer to O’Brien after the preliminary December 2022 go well with grew to become public. He had been provided $1.5 million in base compensation to work there, together with $2.2 million in bonuses payable by June 2023, in accordance with the amended go well with.
One new allegation is that O’Brien defrauded Proskauer by “pervasive and protracted” expense abuses and reimbursement fraud. Proskauer Rose additionally paid $142,500 to a charity during which O’Brien was personally concerned after O’Brien circumvented the agency’s inside controls, in accordance with the go well with.
One other new allegation is that O’Brien gave confidential details about a Proskauer Rose recruiting initiative to the chair of Paul Hastings, who used it “to Proskauer’s detriment.”
Regulation.com recognized the chair as Frank Lopez.
The go well with stated O’Brien was planning to affix Paul Hastings with Leigh Anne Whyte, then the chief monetary officer of Proskauer Rose. 4 different key Proskauer Rose staff have been additionally being mentioned for roles at Paul Hastings.
Earlier than she left Proskauer Rose, Whyte allegedly helped O’Brien “in breaching his fiduciary duties to the agency,” the go well with stated. Whyte is an Australian citizen who’s regarded as at the moment residing in that nation, the go well with stated.
Publications masking the amended go well with have been unable to achieve Whyte for remark.
Paul Hastings gave this assertion to Regulation.com: “Paul Hastings neither solicited nor acquired any confidential or proprietary info. This continues to be one other agency’s personnel dispute and we don’t touch upon different corporations’ personnel issues.”
Paul Hastings additionally stated it frequently recruits “throughout each our authorized and enterprise providers roles within the strange course.”
A lawyer for O’Brien, Russell Beck of Beck Reed Riden, gave this assertion to Regulation.com: “It appears, sadly, that the amended criticism was drafted with a watch towards utilizing the media as an unwitting car for salacious protection. Mr. O’Brien will as an alternative reply within the correct venue of the courtroom.”
The case is Proskauer Rose v. O’Brien.
