Charles Carroll v. IDEMIA Identity & Sec. USA

CourtCourt of Appeals for the Sixth Circuit
DecidedApril 7, 2025
Docket23-6075
StatusUnpublished

This text of Charles Carroll v. IDEMIA Identity & Sec. USA (Charles Carroll v. IDEMIA Identity & Sec. USA) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Charles Carroll v. IDEMIA Identity & Sec. USA, (6th Cir. 2025).

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 25a0188n.06

Case No. 23-6075

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT FILED ) Apr 07, 2025 CHARLES CARROLL, KELLY L. STEPHENS, Clerk ) Plaintiff-Appellant, ) ) ON APPEAL FROM THE UNITED v. ) STATES DISTRICT COURT FOR ) THE MIDDLE DISTRICT OF IDEMIA IDENTITY AND SECURITY USA, ) TENNESSEE LLC, ) Defendant-Appellee. ) OPINION )

Before: GRIFFIN, STRANCH, and MATHIS, Circuit Judges.

MATHIS, Circuit Judge. After IDEMIA Identity and Security USA terminated Charles

Carroll’s employment, he sued IDEMIA for disability discrimination, age discrimination, False

Claims Act retaliation, and breach of contract. Carroll appeals the district court’s grant of

summary judgment in IDEMIA’s favor. Discerning no error, we affirm.

I.

IDEMIA specializes in biometric identification and security. For example, it provides state

and federal governments with identity technology platforms, such as fingerprinting and facial-

recognition services. In 2011, IDEMIA named Carroll its Senior Vice President (“SVP”) of

Enrollment Services. In that role, Carroll oversaw a contract with the Transportation Security

Administration (“TSA”) to administer its PreCheck program. Carroll also sat on IDEMIA’s

Executive Committee and reported directly to IDEMIA’s Chief Executive Officer. No. 23-6075, Carroll v. IDEMIA Identity & Sec. USA, LLC

In 2017, Carroll conceived of a new service innovation called “Trusted Fan.” This program

would use biometric identity services to streamline access to large venues such as stadiums and

arenas. In essence, Trusted Fan participants would enter venues and make purchases simply by

waving their hand. Both Carroll and IDEMIA believed Trusted Fan would create a significant

revenue stream for the company. Along with overseeing the Enrollment Services unit, Carroll also

oversaw Trusted Fan’s development.

In January 2018, Ed Casey became IDEMIA’s new CEO. Casey announced his intent to

replace every member of the Executive Committee. That said, Carroll remained SVP of

Enrollment Services and an Executive Committee member. Shortly after Casey joined IDEMIA,

Carroll told him that he had prostate cancer. Casey was empathetic and encouraged Carroll to take

care of his health.

Later in 2018, TSA told IDEMIA that it intended to solicit proposals for the PreCheck

program. This meant IDEMIA had to compete with other companies to keep its contract with

TSA. In January 2019, Carroll’s business unit ultimately secured the contract (“TSA contract”),

which Carroll claimed was worth $3 billion—the largest contract ever awarded to IDEMIA.

Carroll’s unit also made the second highest net sales for 2018. Based on these successes, IDEMIA

recognized Carroll’s unit as business unit of the year.

Yet Casey criticized Carroll’s work on the TSA contract. In his view, Carroll did not have

a strategy for the contract-renewal process, even though the contract was a critical source of

revenue for IDEMIA. Moreover, according to Casey, Carroll’s bid proposal had several

significant mistakes. As a result, Casey started losing confidence in Carroll’s leadership abilities.

He wanted to remove Carroll as SVP of Enrollment Services, but advisers counseled him to wait

until after the contract-renewal process ended.

-2- No. 23-6075, Carroll v. IDEMIA Identity & Sec. USA, LLC

From the start, Casey also had concerns about Trusted Fan. He believed that Trusted Fan

and PreCheck needed separate leaders because both were large programs central to IDEMIA’s

success. So in October 2018, Casey told his boss, Yann Delabriere, that he planned to move

Enrollment Services from Carroll to a different business unit.

Despite his concerns about Carroll’s performance, Casey gave him a 100% performance

rating for 2018. Carroll’s evaluation noted that he “[w]on” the TSA contract and developed a

“successful marketing campaign to support growth” in PreCheck enrollment. R. 80-3, PageID

1570. As for his work on Trusted Fan, Casey indicated that Carroll made “[g]ood [p]rogress on

Trusted Fan business model development, growth strategy and secured several pilots,” but that he

“[c]ould possibly have achieved more with [a] stronger team and putting more resources in place

earlier in the year.” Id. To sum it up, Casey wrote: “Just think we could have accomplished more

during the year (especially in [Trusted Fan]) and have been limited by the team (short resources,

critical capabilities and talent).” Id.

After IDEMIA secured the TSA contract, Casey told Carroll he planned to separate Trusted

Fan from Enrollment Services. Casey offered Carroll a new role overseeing IDEMIA’s

commercial contracts and market opportunities (SVP of Corporate Development). At first, Carroll

was interested in the role and requested a pay raise and increased bonuses. Although IDEMIA

already paid Carroll more than any other Executive Committee member, Casey supported his

request for a higher salary.

But Carroll changed his mind and told Casey he wanted to keep running both Enrollment

Services and Trusted Fan. Casey responded that Carroll had to choose between the two. After

some time, Carroll decided to keep Trusted Fan, which fell under the role of SVP of Citizen

-3- No. 23-6075, Carroll v. IDEMIA Identity & Sec. USA, LLC

Services. At one point, Carroll told Casey he wanted to resign instead, but Casey emphasized that

he wanted Carroll to stay with IDEMIA.

The parties then began a long—and somewhat tense—negotiation process, primarily

centered on Carroll’s requests for more money. Near the end of the negotiations, Casey explained

that he “want[ed] [Carroll] to stay” and “want[ed] [Carroll] as a partner,” but Carroll had “taken

advantage of [Casey’s] kindness” and taken IDEMIA to its “limits” during the negotiations. R.

60-2, PageID 756. In July 2019, Carroll accepted the role of SVP of Citizen Services. With this

new role, Carroll became the highest paid member of the Executive Committee. Despite this pay

increase, Carroll believed that IDEMIA had demoted him because the new role was “a lesser job

with lesser responsibility.” R. 78-1, PageID 1220.

Though Casey was still skeptical of Trusted Fan’s business model, he gave it additional

support at this time—including a budget for new hires and marketing. He also helped Carroll

create an incentive plan for Digital Labs, the group developing the Trusted Fan technology.

But less than four months later, IDEMIA terminated Carroll, supposedly because of his

“failure of leadership of Trusted Fan and his performance.” R. 77, PageID 1161. Carroll

acknowledged that “everyone was concerned about [Trusted Fan].” Id. at 1140. But he argued

that Trusted Fan’s failure was not his fault. He claimed that IDEMIA did not give Trusted Fan the

support or funding it needed to succeed, noting that Trusted Fan did not have dedicated staff until

his appointment as SVP of Citizen Services. IDEMIA also insisted he use Digital Labs to create

the Trusted Fan technology, even though Digital Labs had failed repeatedly to prioritize the

project. The technology was crucial to Trusted Fan’s success, and IDEMIA agreed that Digital

Labs “mov[ed] slow[ly] with production of Trusted Fan technology.” R. 90, PageID 1846. On

-4- No. 23-6075, Carroll v. IDEMIA Identity & Sec. USA, LLC

top of that, IDEMIA ballooned its revenue assumptions for Trusted Fan to inflate its image for a

potential public offer.

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Charles Carroll v. IDEMIA Identity & Sec. USA, Counsel Stack Legal Research, https://law.counselstack.com/opinion/charles-carroll-v-idemia-identity-sec-usa-ca6-2025.