CEO DATELINE - Ex-CFO sues Natural Products Association, CEO Daniel Fabricant
CEO DATELINE - Ex-CFO sues Natural Products Association, CEO Daniel Fabricant
- February 3, 2016 |
- LORI SHARN BRYANT
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The Natural Products Association is defending itself against a lawsuit filed by a recently fired executive, who alleges that CEO Daniel Fabricant created a hostile work environment—particularly for women—and used the association's credit card to spend lavishly at strip clubs and restaurants.
Former Senior Vice President and Chief Financial Officer Brent Weickert filed the lawsuit against Fabricant and NPA Dec. 7 in California, where he lives and worked. The case was transferred to the U.S. District Court for the District of Columbia Jan. 28. NPA's head office is in Washington, D.C.
"We will vigorously defend the case and are confident we will prevail," Board President Roxanne Green said in a statement. "We have the utmost confidence in Dr. Fabricant and his ability to continue leading the organization which he has helped to expand, modernize, and strengthen the natural products industry."
NPA and Fabricant—through a spokesman—declined further comment for this story.
Fabricant, who has a Ph.D. in pharmacognosy, rejoined NPA as CEO in April 2014. He had left the association in 2011 to help regulate the dietary supplements industry at the U.S. Food and Drug Administration. Government watchdogs criticized the moves, but Fabricant raised NPA's profile in a sector facing intense media and legal scrutiny.
Weickert was an 18-year veteran of NPA before his departure in October 2015. His lawsuit claims he was retaliated against, and then wrongfully terminated for "exposing Fabricant's conduct." Weickert wrote a letter to Green, the board president, in May 2015. According to the lawsuit, the letter advised NPA about multiple issues, including that Fabricant's "drinking had become excessive" and that his "abusive behavior had driven away multiple female employees."
In a motion to dismiss filed in January, NPA countered that Weickert was an at-will employee who was properly terminated for several reasons: Faced with a budget shortfall, the executive committee determined it would be cheaper to outsource his job functions. Also, Weickert working from his home in California was "not necessarily efficient or prudent from a control and reporting standpoint."
The motion said Weickert engaged in "financial improprieties," including using NPA credit card reward points for his personal benefit, and that he acted improperly by communicating internal NPA data and information to certain board members "outside the normal reporting channels and beyond the scope of his authority."
The motion also states that Weichert never personally observed the alleged harassment of female staffers, and therefore cannot seek damages for a hostile work environment.
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