A man who filed multiple claims against Roadrunner Intermodal Services and Central Cal Transportation has amended his complaint to add a count claiming protection under California's whistleblower protection statute. The amended complaint was filed in federal court on March 5.
According to the complaint, the man and another individual sold their capital stock in Central Cal Transportation to Roadrunner when Roadrunner acquired the other company. In exchange, Roadrunner paid the man a little more than $110,000 and promised to pay an earn-out amount if the company earned profits of at least $1.4 million in the subsequent fiscal years. The man was also hired on to Central Cal Transportation as its vice president at a salary of $200,000.
The man noticed that there were financial issues after he had been hired and reported the fraud to Roadrunner. In 2015, Roadrunner refused to pay the earn-out amount even though the company had been profitable. It subsequently fired the man without cause. His last paycheck was for a smaller amount than what he was owed. When he went to work for T.G.S. Transportation, Roadrunner then filed a lawsuit against that company. The man has filed claims for wrongful termination, retaliation, failure to pay wages, slander and libel and for whistleblower protection.
Retaliation by employers against employees for engaging in protected activities such as reporting financial irregularities or fraud is illegal. When companies do so, the workers may have the basis to file actions for retaliation in addition to any other claims that they might have. People who report their companies for fraud have protections available to them under state and federal whistleblower laws. Workers might benefit by seeking the advice of experienced employment lawyers about their rights in their particular cases.
Source: Northern California Record, "Madera man amends whistle-blower case against Roadrunner Intermodal Services", Karen Kidd, March 24, 2018