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Tech unicorn Carta filed a lawsuit in the Northern District of California in August against its former Chief Product Officer Heidi Johnson, demanding she turn over secret recordings of the company's top executives and board members. It's the second time the company has gone to federal court in order to prevent the release of what it says are damaging recordings. In court documents reviewed by Insider, Carta states that Johnson was fired in November 2022 for having a "polarizing" management style and for taking unauthorized leave. Shortly after her termination, both Johnson and Talton filed complaints with the company's board raising issues about her firing and the conduct of CEO Henry Ward. Additionally, Carta is seeking monetary damages from Johnson for breach of contract with the amount to be determined at trial.
Persons: Carta, Heidi Johnson, It's, Johnson, Andreessen Horowitz, Jerry Talton, Talton, Henry Ward, Lindaur, Emily Kramer Organizations: Northern District of, Lightspeed, New York's Southern, Carta Locations: Northern District, Northern District of California, Silicon, New York's, New York's Southern District, Carta
In a new legal filing Carta's former CTO accuses the company's CEO of a litany of misdeeds. New details have emerged in the ongoing lawsuit between $7 billion startup Carta and its former CTO Jerry Talton. Four days after submitting that letter, Talton was placed on administrative leave. On December 23, 2022, two months after sending his letter, Talton was fired and stripped of $10 million of unexercised stock options, according to Wednesday's filing. The legal filing claims that the company "invaded Talton's privacy and inserted these salacious elements in the complaint simply to malign him."
Carta, a Silicon Valley darling valued at more than $7 billion, has been embroiled in multiple lawsuits with former employees that named Henry Ward, its CEO and cofounder. Meanwhile, the company is separately suing Jerry Talton, the chief technology officer whom it fired and who was deposed as a witness in the Kramer case. Carta alleges he made secret recordings of company executives and shared them with former female employees who were in legal disputes with the company. And now that the Kramer case has been settled, the complaints from other employees included in the lawsuit may never see the light of day. Lawyers for Talton are expected to file an answer to the company's lawsuit by March 15.
Carta, facing allegations of discrimination and retaliation, had been scheduled to go to court in February. A lawsuit brought by former Vice President of Growth Emily Kramer alleging gender discrimination and illegal retaliation was settled on February 6 in California Superior Court, according to a court filing. While the Kramer case has now been settled, Carta is still involved in other legal disputes and facing complaints of gender discrimination. Carta's "No assholes policy"According to the lawsuit, Kramer was recruited by Carta CEO and co-founder Henry Ward in 2018 to serve as Carta's head of marketing. As part of her job, Kramer led the company's high-profile campaign to raise awareness about the gender equity gap in Silicon Valley.
Three former employees filed complaints alleging gender discrimination at Carta. In a statement she told Insider that she was not fired and did not leave the company due to any gender discrimination issues. "I do not feel that I experienced any gender discrimination or any unfair or sexist treatment during my employment at Carta," she said in the statement. Shortly after Johnson's firing, Carta's chief technology officer, Jerry Talton, filed a complaint with Carta's board expressing concerns about her termination and about larger issues of gender discrimination and retaliation at the company. Carta's internal investigationFollowing Talton's complaint, Carta hired the white-shoe law firm Paul, Weiss to investigate the claims, a person familiar with the matter said.
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