When Barnes & Noble fired chief executive officer Demos Parneros, he fought back with a lawsuit claiming he was unjustly terminated. That the bookstore made up reasons to get rid of him, and by firing him after just over a year of employment, they breached their contract with him and harmed his reputation. He went after the company in court, asking for over $4 million in severance pay and additional damages.
Unjustly Terminated? Barnes and Noble’s Side
Barnes and Noble, on the other hand, contends that Parneros was no unjustly terminated. They stand by their decision to fire the executive, and has filed a countersuit claiming they should be able to recoup the money already paid to him during his 14-month stint with the company due to his “disloyal conduct.” His lawsuit, they claim, is simply an attempt by Parneros to extort money from the country’s largest chain bookstore.
The termination, they say, was the result of serious allegations of sexual harassment. A female employee reported that Parneros engaged in unwanted comments and touching, telling her in one incident that she seemed the type of woman who would “put out” if she were “wined and dined.”
Parneros is also accused of bullying CFO Allen Lindstrom.
In addition to the sexual harassment and bullying claims, Parneros is impugned for trying to sabotage a major sales deal involving Barnes & Noble and an unknown entity.
Unjustly Terminated? The Denial
Parneros denies the claims, and contends that he never sexually harassed female employees; nor did he bully subordinates, or in any way behave in a way that could be interpreted as disloyal to the company. In terms of his treatment of Lindstrom, Parneros attests that the treatment was appropriate in light of Lindstrom’s subpar work performance.
The idea that Parneros attempted to interfere with any sales deals is totally false, according to him. The sales deal fell apart, and the company founder, Leonard Riggo, blamed Parneros unjustly. According to Parneros, he was unjustly terminated soon afterward, and his severance package was withheld. Beyond that, Barnes & Noble put out a press statement that made Parneros seem to be leaving due to gross sexual misconduct, something he says the company knew was patently false. His lawsuit claims breach of contract and defamation.
What Now?
With both cases pending, the outcomes remain to be seen. Barnes & Noble is reconfiguring its management team, and both sides seem to be preparing for a fight to the end. [Read more…]