Rogers countersues ex-CEO Joe Natale

Rogers Communications Inc. is countersuing ex-CEO Joe Natale, arguing he should pay back the severance and other benefits he received from the company now that it has determined cause for his dismissal. The counterclaim, filed Tuesday in response to Natale’s claims of wrongful dismissal, denies the allegations and claims he made “persistent efforts to usurp the authority of the board, to accept the limits of his authority, and his fiduciary duties.” Originally terminated without cause in November 2021, an investigation into Natale’s conduct allegedly revealed a series of self-enriching and unlawful agreements that breached his employment obligations, leading Rogers to retroactively determine he was fired for cause. According to the company’s court filings, because Rogers was unaware of Natale’s misconduct at the time, he must return any amounts paid to him that exceeded what he was owed upon his termination, as his severance package was based on a without cause dismissal. Rogers says Natale’s explanation for his conduct “was not satisfactory” and on Aug. 17, 2023, he was informed of the after-acquired cause for termination. Natale’s $24 million lawsuit was filed on the same day. “This action arises from Natale's persistent efforts, while the president, CEO, and a director of RCI , to subvert corporate governance and his fiduciary duties for his personal gain. Despite his misconduct, which constitutes cause for dismissal, Natale brings this action in a final attempt to profit at RCI's expense,” claims Rogers. “RCI has no further obligations to Natale,” it wrote, “he must now answer for his conduct and the harm he caused to the company.” Among other allegations, Rogers claims Natale engaged in an unlawful quid pro quo, in which he pressured subordinates into making generous amendments to his employment agreement in exchange for enriching their own. These amendments, said to have happened during Rogers’ governance crisis in late 2021, were “unlawful, improvident, and intended to enrich Natale at the company’s expense,” it argues. Rogers says the final amount of damages it is seeking will be determined before trial, but its demands include the repayment of at least $15,400,000. Which, among other funds claimed to have been "improperly received by Natale as a result of... his breach of fiduciary duty," includes his $5.6 million severance package and his $1.4 million annual salary. – Reporting by Phalen Tynes-MacDonald at pcreed@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca.

Rogers countersues ex-CEO Joe Natale

Court | September 5, 2023

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Rogers countersues ex-CEO Joe Natale

Court | September 5, 2023

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