An ousted chief executive has filed suit against his former employer, Atlanta-based flooring giant Interface, claiming he was terminated in a way that wrongly prevented him from receiving millions of dollars in severance benefits.
Former CEO Jay Gould’s suit also contends Interface defamed him and retaliated against him “for his opposition to discriminatory hiring practices,” though he doesn’t detail examples of such opposition.
The lawsuit alleges that, in a lunch meeting, Interface chairman Dan Hendrix “conveyed to Mr. Gould that the ‘right way to hire a secretary’ is that the individual ‘must fit between desks no more than 24 inches apart’ and ‘a pencil should stay under her breasts.’” Gould’s suit did not make clear when the conversation allegedly occurred.
Hendrix served as Interface's chief executive from 2001 to 2017 and returned to the CEO post when Gould was ousted last month.
At the time of his departure, Interface said Gould violated the company’s working environment policies, but did not cite specifics.
Interface on Monday issued a press release describing Gould’s lawsuit as “replete with lies and mischaracterization. His claims are fiction — they are made up, false and baseless.”
In alleging that Gould was fired for cause, the company cut him off from potentially millions of dollars in severance benefits, including bonuses, continued salary and vesting of stock options and restricted stock, according to the lawsuit.
The suit says the company’s claims were tied to a January sales meeting in Los Angeles where alcohol was served. Gould’s suit said there were allegations he was intoxicated and used the “f-word.”
Interface contends he was verbally abusive to a female executive.
Interface accused him of “repeated abuse of alcohol at company sponsored events and willful mistreatment of subordinate employees, both in violation of Interface’s established lawful policies,” the lawsuit says.
Gould denies those contentions.
His suit says that Hendrix used the “f-word” and that he was inebriated at a company event and “has a reputation for public intoxication at events with Interface employees.”
The lawsuit alleges that, at one such event, the board chairman asked Gould’s wife “if he could hold her and reached out to her in an inappropriately sexual manner.”
Gould also claims that last fall another board member, Chris Kennedy, made “overbearing operational demands,” including that Gould fire a human resources executive Kennedy didn’t like. Kennedy also wanted to select the recruiting firm that would be used to search for her replacement, the suit says.
Gould’s allegations against him are false, said Kennedy, who is a son of former U.S. Attorney and Sen. Robert F. Kennedy and leads a real estate company handling investments for the Kennedy family.
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