Pressure, whether external or internal, will always go hand-in-hand with running a business. Issues that come from outside forces – customers, competitors and the changing tide of the economy – can be responsible for a lot of damage. However, Georgian business owners should also be aware of the issues that can spawn from the inside of their company, including arguments related to unfairness.
This happened with one Los Angeles-based company called Hyperloop One, which is now struggling with claims brought forward by former executives and one of its co-founders. Allegations that are being made include the co-founder reportedly finding a noose at his desk, which he believes was left there by the other co-founder’s brother and the company’s chief legal officer at the time. The company’s attorney has called these claims “delusional”.
Beyond the threats, employees have also claimed breaches of fiduciary duty and breaches of contract. Reports of inequality were also made, with claims surfacing that some family members of one of the co-founders were getting preferential treatment, while other employees had been wrongfully let go from their job by contrast. However, there has been no further information concerning these wrongful termination claims. Additionally, no information on the claimed breaches of contract and fiduciary duty is currently available.
Anyone who is currently facing any accusations of wrongdoings from their employees may wish to seek legal counsel for professional guidance regarding the management of these potentially tricky situations. The sooner steps are taken to mitigate potential internal and external damage, the better.
Source: Bloomberg Law, “Lawsuit Paints Grim Picture of Hyperloop In-House Department,” Gabe Friedman, July 12, 2016