Credit: moodboard/Adobe Stock
A judge ruled last week that a whistleblower retaliation lawsuit filed by former CEO Jonathan Oliver against the $1.3 billion San Francisco Federal Credit Union will proceed in federal court.
San Francisco Federal Credit Union (SFFCU) originally moved Oliver’s lawsuit from state court to federal court but later sought to reverse course, acknowledging the move was a mistake. U.S. District Court Judge Yvonne Gonzalez Rogers in San Francisco denied the request, in part, because SFFCU could not remand the case on its own error.
Recommended For You
Two days after the June 20 ruling, the credit union’s board of directors — named as individual defendants in the lawsuit — and Oliver jointly requested that Judge Rogers approve a proposed stipulation order. The order would extend deadlines to resolve discovery (fact-finding) disputes related to Oliver’s allegations that the board defamed him and violated California labor codes related to the defamation.
Oliver accused the board of defamation, citing a Feb. 20, 2024 CU Times article that quoted SFFCU’s prepared statement about Oliver’s dparture.
He claimed SFFCU’s prepared statement was allegedly false because it asserted the board had to terminate him to fulfill its fiduciary responsibilities in serving the best interest of the membership.
The former CEO also claimed wrongful termination after he reported multiple allegations of regulatory violations, gross mismanagement and abuse of authority to the NCUA in January 2024. At that time, SFFCU’s court documents stated the board received complaints about Oliver’s alleged misconduct.
“After an investigation into the allegations was completed, the Board voted to terminate Plaintiff (Oliver),” SSFCU stated in a court document.
In addition to alleged defamation, Oliver also argued in his lawsuit that the board violated California’s labor codes because its prepared statement harmed his reputation and his chances to land a new job.
In April, the board members filed a special motion based on California’s anti-SLAPP law to strike Oliver’s defamation and labor code violations allegations. This law protects individuals from lawsuits that intend to chill their rights to free speech, particularly concerning matters of public interest. SLAPP stands for Strategic Lawsuit Against Public Participants.
The board argued that its prepared statement was protected free speech, it did not say anything that was false, defamatory or improper, and it was about a matter of public interest given that SFFCU serves more than 51,000 members.
Read More: San Francisco FCU Board’s Special Motion.
Peter Strozniak can be reached as [email protected].
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
