Cox v. Red Hat, Inc.

CourtDistrict Court, E.D. Virginia
DecidedJanuary 9, 2024
Docket1:23-cv-00766
StatusUnknown

This text of Cox v. Red Hat, Inc. (Cox v. Red Hat, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cox v. Red Hat, Inc., (E.D. Va. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF VIRGINIA Alexandria Division

CHRISTINE COX, ) ) Plaintiff, ) ) v. ) Civil Action No. 1:23-cv-766 (RDA/WEF) ) RED HAT, INC., et al., ) ) Defendants. )

MEMORANDUM OPINION AND ORDER This matter comes before the Court on Defendants Red Hat, Inc.’s (“Defendant Red Hat” or “Red Hat”) and Bruce Marcey’s (“Defendant Marcey” or “Marcey”) (collectively, “Defendants”) Motions to Dismiss the Amended Complaint for Failure to State a Claim (“Motions to Dismiss”). Dkt. Nos. 15; 17. This Court has dispensed with oral argument as it would not aid in the decisional process. Fed. R. Civ. P. 78(b); Local Civil Rule 7(J). This matter has been fully briefed and is now ripe for disposition. Having considered the Motions to Dismiss together with Plaintiff Christine Cox’s (“Plaintiff”) Amended Complaint (Dkt. 12), Defendants’ Memoranda in Support (Dkt. Nos. 16; 18), Plaintiff’s Oppositions (Dkt. Nos. 23; 24), and Defendants’ Replies (Dkt. Nos. 25; 26), this Court GRANTS Defendant Red Hat’s Motion to Dismiss (Dkt. 15) and GRANTS-IN-PART and DENIES-IN-PART Defendant Marcey’s Motion to Dismiss (Dkt. 17) for the reasons that follow. I. BACKGROUND A. Factual Background1 Plaintiff Christine Cox began working at Red Hat in March 2021 as the Senior Director of Civilian/National Security Sales. Dkt. 12 (Amended Complaint) ¶ 18. At all times relevant to the

instant civil action, Defendant Marcey was an Account Executive at Red Hat. Id. at ¶ 9. Prior to Plaintiff’s employment at Red Hat, “TWS” had worked with Red Hat in order to secure a multimillion-dollar contract with Veterans Affairs (the “VA”). Id. at ¶ 48. The contract included a base year and two options to extend and involved TWS, Red Hat, and the distributors Carahsoft and DLT Solutions. Id. Shortly before the deal was set to close, Marcey informed TWS about what Red Hat’s margin would need to be and told TWS that he would need to include “his guy” John Rucker, a contractor, in the deal. Id. Plaintiff alleges that Marcey refused to provide a “scope of work” for Rucker and falsely represented that Red Hat did not have “market funds to pay consultants and was using . . . Rucker.” Id. TWS agreed to Marcey’s terms. Id. When the time came to renew the contract with the VA in January 2022, TWS attempted to negotiate with Red

Hat once again. Id. This time, however, TWS required a “scope of work” for Rucker as a condition for TWS’ work on the contract. Marcey again refused to provide that information, causing a breakdown in negotiations. Id. Marcey then replaced TWS on the VA contract with another company, V3Gate, where he had a family member, without considering bids for replacement partners. Id.

1 For purposes of considering Defendants’ Motions to Dismiss, the Court accepts all facts contained within Plaintiff’s Amended Complaint as true, as it must at the motion-to-dismiss stage. Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009); Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007). In January 2022, Plaintiff learned from executives at TWS that Marcey may have been receiving kickbacks on the VA contract through Rucker. Id. ¶ 49. Based on the information that she received, Plaintiff believed that Marcey had been submitting false invoices for work that Rucker was purportedly doing and that Rucker had been sending Marcey some of the money that

the VA had awarded for the contract. Id. After receiving this information, Plaintiff questioned Marcey regarding the alleged kickback scheme, and Marcey responded that she should “mind [her] fucking business.” Id. ¶ 50. Plaintiff later met with Red Hat’s legal department to discuss the ethics and legality of Marcey removing TWS as a partner, Marcey’s alleged scheme with Rucker, and the need for Federal Acquisition Regulation System (“FAR”) compliance. Id. Plaintiff asserts that, after she reported her concerns to Red Hat’s Legal Department in March 2022, Marcey embarked on a continuous, months-long campaign of disparaging her. Id. ¶ 51. Plaintiff alleges that Marcey made the following seven defamatory statements as part of this effort:

• In January 2022, Marcey called Plaintiff a “slut” during a meeting with the VA/Health and Human Services (“HHS”) team. Id. ¶¶ 52, 91.

• At a conference in Orlando, Florida on March 16, 2022, Marcey called Plaintiff a “whore” and a “slut,” and said that “she won’t be around long.” Id. ¶¶ 54, 91.

• At a Capitals game in February or March 2022, Skip Leisgang, a “Proofpoint partner,” told Plaintiff that Marcey was saying that he wanted to “off” Plaintiff’s family and had proof that she had “screwed Greg Feldman,” the CEO of TWS. Id. ¶¶ 55, 91.

• In March 2022, Marcey told Mike McCalip of Carahsoft that Plaintiff “slept with Greg Feldman.” Id. ¶¶ 58, 91.

• At an Amazon AWS conference on April 20, 2022, Marcey told John Meier of TWS and Keith Foley that Plaintiff had “slept her way to the top,” that she had “slept with Greg Feldman,” and that she was a “whore.” Id. ¶¶ 67, 91. • Marcey later told partners and vendors within the public sector community including Kathleen O’Flaherty of Dinatrace, “Don’t work with her or talk to her as a Red Hat employee as I am getting her fired and she won’t be around long” and “[Plaintiff] slept [her] way to the top.” Id. ¶ 91. O’Flaherty then told other partners and vendors within the public sector community that “[Plaintiff] slept with Greg Feldman which is why she wants TWS in the VA deal.” Id.

• On July 27, 2022, when Marcey and John Meier of TWS were still attempting to negotiate a deal to renew the VA contract, Marcey told Meier over the phone that Plaintiff was a “fucking whore,” had “slept with Greg Feldman,” had “slept her way to the top,” and to “get that fucking cunt out of my business.” Id. At around that same time, Marcey also told Meier that Plaintiff was “sleeping with Jim Boykin” of “Fed Civ Partners.” Id.

On March 29, 2022, Plaintiff went to Red Hat’s Legal Department to express her concerns about Marcey spreading rumors about her. Id. ¶ 57. Plaintiff also reported the rumors to Joe Sangiuliano, Red Hat’s Vice President of Business Development, who responded by warning Plaintiff to “be careful.” Id. ¶ 62. In April 2022, Plaintiff reported Sangiuliano’s statement along with the rumors that Marcey had been spreading about her to Red Hat. Id. ¶ 59. At some point, Rick Miller, Senior Director of “Civ 2,” told Plaintiff not to “push [Marcey]’s buttons” and to “stay in [her] swim lane.” Id. at ¶ 60. Plaintiff replied that the “PSE (public sector enterprises)” “swim lane” included incumbent partners being removed from longstanding and profitable business transactions. Id. In response, Rick Miller told Plaintiff that she was “playing with fire” and to “stand down.” Id. Feldman also spoke to Mike Miller, the VP for Enterprise Sales for Red Hat, on multiple occasions in an effort to stop Marcey from continuing to spread rumors about Plaintiff and told Mike Miller that HR needed to take action. Id. ¶ 72. Plaintiff alleges that, despite alerts from her, Feldman, and others that the rumors Marcey was spreading were inappropriate, false, and damaging, Red Hat took no action against Marcey. Id. ¶ 73. Indeed, Plaintiff alleges that, at a networking event on March 1, 2023, Mike Miller quoted Marcey to her face, stating “You’re the one who ‘slept her way to the top.’” Id. ¶ 84. Plaintiff further asserts that, later, in a meeting with HR in July 2022, Red Hat retaliated against her by subjecting her to a degrading and humiliating “interrogation” about her relationships with men in the industry. Id. ¶ 77.

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Cox v. Red Hat, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/cox-v-red-hat-inc-vaed-2024.