Jewelry companyOne of the recent popular lawsuits built on gender discrimination has been dismissed. It made a lot of waves when the maker of designer jewelry, Alex and Ani charged the Bank of America for gender bias and greed. They had contacted a wrongful termination lawyer who filed the charges against the bank early this year. However, in a new and interesting turn of events, Alex and Ani has dropped the $1.2 billion lawsuits.
According to official reports, the Rhode Island company decided to dismiss the suit out of their own volition, supposedly after it reached a confidential agreement the bank. Indeed, the suit had some really intriguing claims. One of them was that the Bank of America, which happens to be one of the many banks that lend the designer jewelry company money had wrongfully declared them default in December 2018. The designer jewelry company claimed through its wrongful termination lawyer that this action by the band affected its credit line and cost them over $1 billion in expenses, reduced market value as well as lost revenue.
In addition, Alex and Ani claimed it had been treated unfairly by the bank of America ever since Andrea Ruda, who was a woman, became the chief financial officer in December 2017. The woman had replaced Bob Woodruff, a man who left the position.
The allegations also included the claim that the bank misappropriated millions of dollars in consulting costs, fees as well as other reimbursements from the designer jewelry makers under Woodruff tenure that lasted a year. This is allegedly in contrast to Ruda, who was described as being efficient and was said to have cut costs and improve the bottom line. Furthermore, the suit also alleged that immediately Ruda became the CFO, the bank started recommending costly outside consultants be hired, particularly a male chief restructuring officer at the expense of Alex and Ani.
Jewelry company
The major crux of the issue is that in that lawsuit which was filed in federal court in New York. Several of the accusations that Alex and Ahi leveled against the Bank of America through their wrongful termination lawyer implied the bank tried to push women out of leadership roles at the company. Similarly, they also suggested that the bank wrongly placed the designer jewelry makers in default of a loan of $170 million and a $50 million line of credit.
However contrary, to the claim that payments were made to Alex and Ahi for dismissing the suit, the bank strongly disagrees with anything of sort type. In fact, a spokesman of the Bank of America categorically told news officials that no payments were made to the jewelry company for dismissing the suit. He stated that the suit was withdrawn voluntarily and that the bank would continue to provide support for credit-worthy diverse businesses all over the planet.
Interestingly, when Alex and Ani were approached to respond to this, they declined to comment on the dismissal but directed all inquiries to their legal counsel.