RBG Holdings settles case with ousted CEO for half a million pounds
RBG Holdings has settled a case with its former chief executive for £500,000 after she sued the law firm for wrongful dismissal, the company confirmed today.
Nicola Foulston was the CEO of RBG Holdings, a listed law firm that incorporates the businesses of Rosenblatt and Memery Crystal, until she was ousted in January. She joined Rosenblatt in 2016 as chief executive of the City law firm, before she was appointed as head of the new entity RBG Holdings in 2018.
The company announced Foulston’s departure at the start of the year stating that the board had “lost confidence” in her “as a result of cultural concerns and the execution of the group’s strategy.”
It was later revealed in an Employment Tribunal case linked to the matter a month later that she was accused of making racist comments at a dinner party, according to press reports.
The employment claim was filed by Noel Deans, a former partner and head of employment and a black lawyer, as he was in attendance at the party in question.
Foulston has previously denied the allegation of racism. The case at the tribunal is ongoing.
After she left the firm, Foulston called on City litigation boutique Keidan Harrison to issue a lawsuit against the company in May over wrongful dismissal and breach of contract by RBG. The company instructed Herbert Smith Freehills for its defence as it filed a counterclaim against her over allegations of breach of fiduciary duty.
In a statement to the London Stock Exchange this morning RBG announced that it had settled with her and her management company Velocity Venture Capital Limited for £500,000. This consists of £200,000 of agreed damages for breach of contract and £300,000 for legal costs for her which will be paid over 12 months.
As part of the settlement, all litigation has been dropped.
Foulston was contacted for comment.
Chief operating officer John Divers has since taken over as the RBG’s chief executive following Foulston’s departure.
Since Foulston’s departure, RBG Holdings’ share price has been steadily dropping, with the company’s shares currently trading at 20.5p per share.