A long-time employee is taking legal action against a major financial services company, alleging wrongful termination and retaliation. Matt Johanson filed a complaint in the United States District Court for the Northern District of Illinois on December 20, 2024, against Discover Financial Services. The lawsuit accuses the company of breaching an implied covenant of good faith and fair dealing, as well as retaliating against him under Title VII of the Civil Rights Act of 1964 and Section 1981.
The case revolves around Johanson's claims that Discover Financial Services unfairly deprived him of earned equity awards and terminated his employment after 27 years with the company. Johanson alleges that he was fired for supporting a colleague, Juatise Gathings, who faced racial discrimination at work. In his role as Senior Vice President and Chief Environmental, Social, Governance (ESG) Officer, Johanson had been instrumental in establishing Discover's ESG program. However, tensions arose when he protested what he perceived as racially motivated actions against Gathings by Discover's Human Resources team.
According to the complaint, Johanson voiced concerns about discriminatory practices within the company to senior executives in February 2023. He highlighted issues with Discover's attendance policy disproportionately affecting Black employees at a call center in Chatham. His protests allegedly led to a retaliatory investigation into his conduct and ultimately resulted in his dismissal. During his termination meeting, Chief Human Resource Officer Andy Eichfield reportedly cited Johanson's support for Gathings as a reason for his firing.
Johanson also challenges Discover's decision to cancel his unvested equity awards worth significant amounts. He contends that this action was arbitrary and lacked justification under the company's Omnibus Incentive Plan. The plan outlined specific conditions under which equity could be forfeited due to misconduct or risk policy violations. However, Johanson argues that these provisions were applied in bad faith to penalize him for engaging in protected activities.
In response to these alleged injustices, Johanson seeks economic and non-economic damages from Discover Financial Services. He requests compensation for lost earnings and benefits resulting from his termination and cancellation of equity awards. Additionally, he seeks punitive damages for emotional distress caused by what he perceives as unlawful retaliation.
Representing Matt Johanson are attorneys Rafael E. Lazaro and Catherine J. Roland from Lazaro Law Group LLC based in Chicago. The case has been assigned Case No. 1:24-cv-13105 in front of judges yet to be named.