Gene Zawrotny, a seasoned private securities expert, has filed a lawsuit against his former employer, an investment platform company, and its executives for alleged retaliation and fraudulent inducement. The complaint was lodged in the Superior Court of California, County of Santa Clara on October 7, 2024. Zawrotny accuses Linqto, Inc., along with Bill Sarris and Joe Endoso, of various legal violations following his abrupt termination after just over three months of employment.
The case revolves around allegations that Linqto hired Zawrotny for his industry reputation and expertise but retaliated against him when he raised concerns about the company's compliance practices. According to the complaint, Zawrotny began working as Chief Revenue Officer at Linqto on January 2, 2024. Despite making significant contributions during his short tenure—such as developing new revenue streams and facilitating major deals—Zawrotny claims he was terminated in retaliation for highlighting serious compliance issues within the company. These issues included allowing unaccredited investors to participate in offerings meant only for accredited investors, misleading marketing practices, excessive undisclosed markups on securities prices, and operating without proper licensing in various jurisdictions.
Zawrotny's complaint details how he repeatedly alerted Linqto's leadership to these problems through weekly compliance meetings but received little support or action from the company. Instead of addressing these concerns, Linqto allegedly used Zawrotny's public profile to enhance its market position before terminating him to avoid paying his salary and prevent his stock options from vesting.
The lawsuit asserts four causes of action: retaliation under California Labor Code § 1102.5, fraudulent inducement, breach of the implied covenant of good faith and fair dealing, and quantum meruit. Zawrotny seeks general and special damages for lost earnings and benefits due to his wrongful termination. He also demands punitive damages for the alleged retaliatory actions by Linqto's executives.
Represented by attorneys David R. Callaway and Edward E. Shapiro from Glenn Agre Bergman & Fuentes LLP, Zawrotny is determined to hold Linqto accountable for what he describes as malicious conduct designed to exploit his expertise while disregarding legal obligations. The case is presided over by Judge C. Roman under Case No. 24CV449128.