Charles Carroll v. IDEMIA Identity & Sec. USA

Court of Appeals for the Sixth Circuit·Decided April 7, 2025·No. 23-6075·Unpublished

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NOT RECOMMENDED FOR PUBLICATION File Name: 25a0188n.06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.

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.

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

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

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, (6th Cir. 2025).

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