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Leadership1 publisher3 min readPublished

Ex-eBay Motors manager's Sarbanes-Oxley suit extends retaliation claims to his job references

A former eBay Motors manager says in a Sarbanes-Oxley suit that eBay fired him in 2015 for reporting fraud and then sabotaged his next job. His complaint treats those later references as part of the retaliation, so what managers say about a former employee after the exit now sits beside the firing itself.

The Board Room · Leadership desk

Illustration accompanying Ex-eBay Motors manager's Sarbanes-Oxley suit extends retaliation claims to his job references

What happened

  • He says retaliation followed after he questioned how the new eBay Motors head, formerly WHI Solutions' CEO, counted the acquisition's results for the board.
  • His manager allegedly told him his rating was cut to Does Not Meet Expectations after a calibration session led by the eBay Motors head.
  • The complaint was filed on September 25 in federal court in the Northern District of California.

Compiled by The Board RoomSomething wrong?How this is made

Why it matters

  • exposure If a court lets the reference allegations stand, a company's exposure to a whistleblower continues past the exit date through whatever its managers tell future employers.
  • constraint A calibration led by the executive an employee has accused is hard to defend as an independent check, and so is a layoff justified by that rating.
  • decision Companies have to settle who answers reference requests for departed staff who raised board-level concerns: central HR with dates and title, or the managers who knew their work.

The case centres on a disputed 2015 layoff at eBay Motors [12]. According to hcamag.com's account of the complaint, the alleged retaliation continued after he left and reached his next job, which he accuses eBay of sabotaging [13]. The account breaks off as it turns to his job search. It does not say what was said about him or who said it, and it includes no response from eBay. The complaint is a new filing, and none of its allegations has been tested in court [1].

He raised concerns twice, about different people. The first time, his target was a director who asked staff for personal favours [3]. That director also kept a former consultant on as an adviser while the consultant ran a competing auto-parts business on eBay's platform, with what the complaint calls "specialty pricing, waiver of various fees, directed sourcing" [4]. He took this to his manager and to the legal department in late 2010 [5]. By early 2012 an internal investigation had ended with both men fired for cause, and he took over the director's job on an interim basis [6][7]. The second time, his target was the sitting head of eBay Motors, formerly chief executive of WHI Solutions. That executive allegedly counted existing eBay activity as if the acquisition had generated it, in results reported to the board [8][9]. The retaliation the complaint describes comes after this second set of concerns [10].

His ratings, as the complaint describes them, fell after 2012. He had top-third ratings and a senior manager title by 2009 [2]. In 2012 eBay gave him a "Critical Talent Award" that put him in the top 1% of performers company-wide [7]. After that, the complaint says, his direct reports were moved to other managers, his reviews were skipped and his ratings were downgraded [11]. A director-level job he had been doing for over a year went to a hire with no automotive experience, and he was never interviewed for it [10]. He was laid off in February 2015, less than three years after the award [1].

Any company that ranks staff before a layoff will recognise the calibration detail. The complaint says his manager told him that evening she had rated him "Meets Some [Expectations]". It says the rating became "Does Not Meet [Expectations]" after a calibration session led by the eBay Motors head [12]. That session, the complaint says, was led by the executive whose acquisition figures he had questioned [9][12].

The exposure can continue after the employee leaves. Suppose a court accepts the complaint's framing. Then a statement made to a prospective employer after the exit belongs to the same retaliation claim as the firing [13]. Controlling that risk comes down to deciding who may speak about a former employee. Sending every request to HR for dates and title only means the departing person loses a strong word from managers who rated them well. Leaving references to individual managers means the executive named in the concerns can be the one who takes the call.

This quarter's decision is narrow: who inside the company may discuss a departed employee who raised concerns with the board or the legal department. The consequence arrives later, when what those people said turns up in a filing like the one made on September 25 in the Northern District of California [1].

What to watch

  • eBay's answer or motion to dismiss, and whether it contests the post-employment reference allegations specifically.
  • Whether the court treats the alleged reference sabotage as part of the Sarbanes-Oxley retaliation claim or separates it out.
  • The full complaint's account of what was said to his prospective employer, and by whom.
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