In her amended claim, Ms. Sandhu said she was underpaid compared to CEO John Giamatteo and another BlackBerry division president despite performing 'substantially similar work under similar circumstances.' The Blackberry logo is shown on a office tower in Irvine, Calif., on Oct. 20, 2020.MIKE BLAKE/Reuters
A California judge has tossed out the lone claim against BlackBerry Ltd. BB-T CEO John Giamatteo in a harassment, discrimination and wrongful termination lawsuit brought against the company and its top executive by former chief marketing officer Neelam Sandhu.
In July, Magistrate Judge Sallie Kim of the U.S. District Court for the Northern District of California dismissed three of Ms. Sandhu’s eight claims. In so doing, the judge mostly sided with BlackBerry’s “motion to dismiss” that asserted the allegations filed in April did not support a claim for a hostile work environment because Ms. Sandhu failed to demonstrate “pervasive” or “severe” harassment that altered her employment conditions. Justice Kim ruled then the complaint “contains a multitude of bald assertions of legal conclusions” and “vague allegations.”
But the judge did not grant BlackBerry’s request to strike from a fourth claim all references to “harassment and discrimination.” Judge Kim also let Ms. Sandhu file an amended complaint.
Ms. Sandhu originally claimed that, despite being a high performer who was promoted under previous CEO John Chen, her career was derailed after Mr. Giamatteo became president of the cybersecurity business in October, 2021. In her amended claim, Ms. Sandhu, who was also chief elite customer success officer, said she was underpaid compared to Mr. Giamatteo and another BlackBerry division president despite performing “substantially similar work under similar circumstances.”
In a ruling Thursday, Justice Kim granted BlackBerry’s motion to dismiss a claim for wage discrimination, finding the “limited information” in Ms. Sandhu’s claims suggests she “did not perform substantially similar work” to the presidents. Justice Kim also dismissed Ms. Sandhu’s amended hostile workplace claim – the only one also made against the CEO as well as BlackBerry – arguing Ms. Sandhu had failed to make the case the alleged actions were “severe or pervasive” enough to violate California employment law.
Mr. Giamatteo was named CEO last December, succeeding Mr. Chen, weeks after an employee anonymously filed a sexual-harassment complaint against the incoming leader. An outside law firm investigated and found no wrongdoing or violations of the company’s code of conduct. Ms. Sandhu’s amended claim called the investigation “a sham.”
Four days before his appointment and after she spoke to investigators, Ms. Sandhu was told by interim CEO Richard Lynch she was being let go. BlackBerry said in a court filing she was cut as part of a restructuring and owing to her “habitual mistreatment” of co-workers.
Ms. Sandhu alleges she rejected an invitation from Mr. Giamatteo after he joined BlackBerry in 2021 to travel together and work for him, adding that they attended a dinner during which he made her uncomfortable and tried to get close and woo her.
After reporting the incident to Mr. Chen, she alleges Mr. Giamatteo stopped inviting her to meetings and spread rumours she wasn’t a good collaborator, sabotaging her career. Her amended claim said a “boys club” of white male executives routinely engaged in gender-based harassment. She reported Mr. Giamatteo’s alleged retaliation to the HR department in early 2023.
Ms. Sandhu’s amended claim alleged Mr. Giamatteo came to the dinner dressed up, wearing aftershave and made unwelcome sexual advances, and his behaviour and body language exhibited sexual undertones. She alleged he looked her “up and down” and tried to touch her hands and arms.
Justice Kim ruled the alleged exchanges – which BlackBerry has not yet addressed in a statement of defence – “do not constitute severe or pervasive harassment, even under California’s ‘low bar’ for the severe or pervasive standard.”
The judge wrote “the court agrees that Giamatteo’s alleged conduct” – which hasn’t been tested in court – “could put a reasonable woman ill at ease.” But California law “only creates liability for conduct that is objectively hostile, not merely uncomfortable,” and the allegations do not meet that standard. Justice Kim also said Ms. Sandhu had not sufficiently alleged she was subject to a hostile environment due to her gender. Justice Kim dismissed both claims with prejudice, meaning Ms. Sandhu can’t refile the case in the state court. But Justice Kim again refused a company motion to strike references to sexual harassment and disparate pay.
Maria Bourn, an attorney for Ms. Sandhu, noted in an e-mailed statement “the vast majority of claims remain intact,” adding “we strongly disagree with this ruling” as it is “adverse not only to my client, but everyone that believes in pay equity.” She said Ms. Sandhu is considering an appeal. Ms. Sandhu originally sued under the pseudonym Jane Doe but later proceeded under her name as she hadn’t obtained court approval to do so anonymously.
BlackBerry spokesperson Camilla Scassellati-Sforzolini said in an e-mail the company is pleased the court has permanently dismissed all claims against Mr. Giamatteo and all harassment and pay-disparity claims, adding it will “vigorously” fight the remaining wrongful-termination claims.