Cerni v. J.P. Morgan Securities LLC

208 F. Supp. 3d 533, 2016 U.S. Dist. LEXIS 133651, 2016 WL 5805300
CourtDistrict Court, S.D. New York
DecidedSeptember 20, 2016
Docket15-CV-5389 (AJN)
StatusPublished
Cited by31 cases

This text of 208 F. Supp. 3d 533 (Cerni v. J.P. Morgan Securities LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Cerni v. J.P. Morgan Securities LLC, 208 F. Supp. 3d 533, 2016 U.S. Dist. LEXIS 133651, 2016 WL 5805300 (S.D.N.Y. 2016).

Opinion

MEMORANDUM & ORDER

ALISON J. NATHAN, District Judge

Plaintiff Christopher Cerni (“Cerni”) has brought this lawsuit under the Age Discrimination in Employment Act (“ADEA”) against his former employer, Defendant J.P. Morgan Securities LLC (“J.P. Morgan”). Cerni asserts that J.P. Morgan violated the ADEA by (1) terminating him because of his age, (2) “papering” Cerni’s personnel file with false performance reviews after Cerni complained about age discrimination, and (3) adopting a practice of terminating employees with executive titles and high salaries. Before the Court is Defendant J.P. Morgan’s motion to dismiss Counts II and III of Cerni’s Amended Complaint, see Dkt No. 16, and Plaintiffs request to amend the complaint, see Dkt No. 23. For the reasons provided below, J.P. Morgan’s motion is granted in part and denied in part, and Cerni’s request for leave to amend is denied.

I. BACKGROUND

The following facts are taken from Cer-ni’s Amended Complaint (Dkt No. 15) and are assumed to be true for purposes of this motion.

Plaintiff Cerni worked for Defendant J.P. Morgan from March 2000 until March 2013. Amend. Comp. ¶ 12, 47. He held a variety of titles, starting out as an “H&Q Officer” and ending as an “Executive Director” and “Senior Trader” in J.P. Morgan’s “Americas Equities Block Trading” group. Amend. Compl. ¶¶ 12-24. Throughout his employment at J.P. Morgan, Cerni [537]*537received positive performance reviews. For example, his performance ratings in both 2005 and 2006 were “exceeds expectations,” and his performance reviews for 2011 and 2012 stated that he was “a good team player and always willing to lend a helping hand” and that “[h]is relationship with Capital Markets is strong.” Amend. Compl. ¶¶ 35, 75-76, 92-93. Never during his tenure at J.P. Morgan was Cerni informed that he had received a negative performance review. Amend. Compl. ¶¶ 94-98.

Starting in 2012, the conditions of Cer-ni’s employment “dramatically changed for the worst [sic].” Opp. at 2 (Dkt No. 23); Amend. Compl. ¶¶ 25-40. For example, Cerni was taken off one of his higher revenue generating accounts and reassigned to a less profitable account. Amend. Compl. ¶¶ 25-29. Things came to a head when, on February 13, 2013, Cerni was advised that he was being terminated, effective March 29, 2013. Amend. Compl. ¶ 47; Ex. 1. According to the notice Cerni received, he was being terminated because J.P. Morgan’s “staffing needs ha[d] changed.” Ex. 1.

Cerni suspected that age discrimination played a role in his termination. At the time Cerni was terminated, he was 42 years old. Amend. Compl. ¶ 107. A few months before his termination, one of Cerni’s supervisors had stated during a meeting “that [J.P. Morgan] was going to ‘juniorize’ the sales and trading floor by replacing ‘older people’ with ‘younger and leaner’ employees.” Amend. Compl. ¶ 41. Approximately one month later, another supervisor expressed his intention to initiate “a reduction in headcount where more highly paid senior executives would be replaced with less costly junior traders and sales staff.” Amend. Compl. ¶42. Cerni knew that he was one of these “more highly paid senior executives” because, when he had received his 2012 bonus, his boss had repeatedly referred to his “high salary.” Amend. Compl. ¶ 44.

At some point, Cerni hired a lawyer. See Amend. Compl. ¶ 51-52. Cerni’s lawyer (Michael Paulonis) called J.P. Morgan’s Human Resources (“HR”) Department to inquire why Cerni had been terminated, but he received no response. Amend. Compl. ¶ 51. After two weeks had passed, Paulonis called again and left a voicemail asserting that age discrimination had been the reason for Cerni’s termination. Amend. Compl. ¶ 51.

In response to this voicemail, J.P. Morgan’s in-house counsel sent an email to Paulonis. Amend. Compl. ¶ 52; Ex. 2. The email stated that Cerni had been terminated not because of age discrimination, but because of his poor performance reviews. According to J.P. Morgan’s counsel, “Cerni had been rated Needs Improvement (the lowest possible rating) for both 2011 and 2012” and also had a low peer review ranking for 2012. Ex. 2. J.P. Morgan’s counsel further asserted that “[n]o one with these ratings and rankings was not selected for termination, and in fact, others selected for termination were considerably better on both fronts.” Ex. 2. In his Amended Complaint, Cerni asserts that these “unfounded, post hoc, negative performance reviews” did not exist “prior to his objection to his termination as discriminatory.” Amend. Compl. ¶ 121.

After pursuing age discrimination charges with the Equal Employment Opportunity Commission (“EEOC”), Cerni filed this lawsuit against J.P. Morgan on July 11, 2015. Dkt. No. 1. His Complaint alleged three counts under the ADEA. Id. J.P. Morgan filed a motion to dismiss Counts II and III of the Complaint on November 10, 2015. Dkt No. 9. In response to the motion to dismiss, Cerni filed an Amended Complaint on December 10, [538]*5382015. Dkt No. 15. Cerni’s Amended Complaint raised the same three claims as his original complaint: (1) an individual disparate treatment claim alleging that J.P. Morgan terminated Cerni due to his age, (2) an anti-retaliation claim alleging that J.P. Morgan “papered” Cerni’s file with false negative performance reviews after he complained about age discrimination, and (3) a disparate impact collective action challenging J.P. Morgan’s “practice of selecting employees with executive titles and high salaries ... for termination.” Amend. Compl. ¶¶ 106-135. Defendants renewed their motion to dismiss Counts II and III on January 25, 2016. Dkt No. 16.

II. LEGAL STANDARD

“To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ ” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. When evaluating a motion to dismiss under Rule 12(b)(6), a court must “accept all allegations in the complaint as true and draw all inferences in the non-moving party’s favor.” LaFaro v. N.Y. Cardiothoracic Grp., PLLC, 570 F.3d 471, 475 (2d Cir. 2009) (citation omitted).

III. DISCUSSION

Defendant J.P. Morgan has moved to dismiss Count II (the anti-retaliation claim) and Count III (the disparate impact collective action) of Cerni’s Amended Complaint. For the reasons provided below, the Court denies J.P. Morgan’s motion as to Count II but grants the motion as to Count III.

A. Count II Survives J.P. Morgan’s Motion to Dismiss

In the second count of his Amended Complaint, Cerni brings a retaliation claim under the ADEA. Amend. Compl. ¶¶ 120-126. J.P. Morgan argues that Cer-ni’s retaliation claim fails on three separate grounds: (1) Cerni did not suffer a “materially adverse action,” (2) the claim is implausible, and (3) the only evidence supporting Cerni’s retaliation claim is inadmissible. Mot. at 8-15 (Dkt No. 17). All three arguments fail.

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208 F. Supp. 3d 533, 2016 U.S. Dist. LEXIS 133651, 2016 WL 5805300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cerni-v-jp-morgan-securities-llc-nysd-2016.