Royal Bank of Canada (NYSE:RY) has filed a countersuit against former chief financial officer Nadine Ahn, detailing findings of its internal investigation into her personal relationship with a co-worker, Reuters reported Friday.
RBC’s countersuit stated that Ahn had violated the bank’s code of conduct, the report added.
In April, RBC said it had fired Ahn after an internal review found that she was in an undisclosed relationship with another executive, Ken Mason, that led to his preferential treatment, including promotion and compensation increases.
Ahn sued RBC in August for about C$20 million, arguing that the bank had made an error when it dismissed her over a personal relationship with a co-worker, and denied that the two were romantic partners.
According to the report, RBC said it had received an anonymous whistle-blower complaint that Ahn and Mason were involved in an intimate relationship.
The bank said it had discovered that Ahn and Mason regularly utilized personal and work devices to communicate, the report added.
RBC stated that Ahn should repay the company about C$3.3 million for payments related to its performance-based deferred share unit program, short-term incentive program and gains on the exercise of RBC stock options, the report said.
According to the report, the bank claimed that Ahn decided to promote Mason as vice president and head of capital and term funding in 2023.
RBC’s court filings described Ahn and Mason’s relationship beginning in 2013 or earlier, and noted their dates, poems written by Mason and intimate email exchanges, the report added.
Royal Bank of Canada did not immediately respond to a Seeking Alpha request for comment.
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