Dow Chemical Co's ex-fraud investigator can pursue claims of being unlawfully fired after disclosing alleged financial misconduct related to the company, including heavy spending by Chief Executive Andrew Liveris, a U.S. judge has ruled.
Kimberly Wood worked at Dow for 25 years before she was fired in October. Her job required her to conduct internal investigations, during which she said she discovered unreported personal expenditures made by Liveris.
Wood alleges in the lawsuit that she was fired after reporting these events to her superiors, upsetting Liveris and Executive Vice President Charles Kalil, who later filed a motion to dismiss the case.
The case has been filed under a provision of the Sarbanes-Oxley Act, under which publicly traded companies are prohibited from discriminating or retaliating against whistleblowers.
"Because Wood sufficiently pleads a claim for relief against Defendants, their motion to dismiss will be denied," U.S. Judge Thomas Ludington said in his ruling on Monday.
Dow termed it as a baseless lawsuit by a "disgruntled" employee who is making false allegations in an attempt for personal gain.
"The court made no determination that the merits of the case are true, but rather only whether the case could move forward for consideration," Dow spokeswoman Rebecca Bentley told Reuters in an email.
Dow will defend the merits of the case vigorously, she said.
The case is Wood v. The Dow Chemical Co., 14-cv-13049, U.S. District Court, Eastern District of Michigan (Bay City).
