A Tale of Social Media, Defamation, and Litigation Risk

Robin Shea of Constangy Brooks Smith & Prophete shares a cautionary tale of a CEO whose impulsive social media behavior escalated an internal employment dispute into a full-blown legal debacle.

What began as a standard workplace misconduct claim against the company’s former Chief Technical Officer (CTO) turned into a reputational and legal crisis after the CEO’s public online commentary reignited withdrawn allegations and drew national attention.

In late 2022, the CTO was terminated following internal complaints he made about alleged sex discrimination and retaliation, which the company seemingly viewed as baseless.

Shortly thereafter, the company sued him, alleging, among other things, inappropriate sexual conduct during work hours.

Although the initial complaint implied the CTO sexually harassed coworkers, it later became clear the messages were consensual and exchanged with non-employees.

The company amended its complaint twice, eventually removing all harassment-related claims.

Despite backing off the original accusations in court, the company’s CEO published a 2023 post on Medium, reiterating the initial misconduct allegations, labeling the CTO as “racist” and “misogynist,” and linking to the outdated complaint.

The post reached tens of thousands of readers via social media and internal company circulation. The CTO responded with a counterclaim against both the company and the CEO for defamation and other torts. Most claims have been allowed to proceed.

This case serves as a reminder that employer speech on social media, particularly from executives, including the CEO, can carry serious legal consequences.

Even if internal discipline is justified, public commentary on a situation can negate privilege protections and expose companies to defamation and emotional distress claims. Counsel should train company leadership on litigation risks associated with public statements and ensure a consistent communication discipline.