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Sexual harassment in corporations isn’t new, but is finally beginning to be taken seriously.
In just a short amount of time, the #MeToo movement has helped lead to a flurry of top CEO’s and executives to stepping down over sexual misconduct allegations.
Steve Wynn, CEO of Wynn Resorts and casinos, recently resigned after allegations of sexual misconduct made the news. Jonathan Bush, CEO of Athenahealth, stepped down over sexual abuse allegations. CEO of Billboard media group and The Hollywood Reporter, John Amato, resigned after sexual harassment allegations. These are just a few of the people that made headlines recently. While for many of these figures, sexual harassment and misconduct was not the only factor for their resignations, it was a primary reason.
These issues of work-related sexual harassment lead to complex questions about sexual harassment in corporations. The media focuses a lot of their attention on the victims who suffered at the company, but there’s also the issue of how the sexual harassment allegations affect the image of the company and the shareholders who have a stake in the company’s reputation.
Shareholders at Hewlett-Packard, American Apparel, Twenty-First Century Fox, and many more, are filing lawsuits against the corporate directors and officers on grounds related to work-place sexual misconduct. These lawsuits raise new questions about corporate liability and how much disclosure there should be when corporate funds are used to settle sexual harassment or sexual misconduct claims at a publicly traded company.
Although these matters can be complex, experienced attorneys can assist shareholders with these issues. Corporate CEO’s, directors and officials have a duty of care and loyalty to their company. When they commit sexual harassment or knowingly cover it up, they may be breaching their duty as a fiduciary and could be held liable. When these officials commit sexual harassment or cover it up they risk putting their corporations at risk. Not only is the corporation’s reputation on the line, but their resources and finances are also at risk.
An attorney can not only assist a shareholder with their lawsuit, but they can also assist with preventative measures. They can help design the policies and contracts that outline the procedures needed to be taken when a serious sexual harassment claim arises so that investigations are done, financial resources are allocated correctly, and the company is better protected.
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