ENDO PHARMACEUTICALS INC. v. FRYER

CourtDistrict Court, E.D. Pennsylvania
DecidedAugust 17, 2020
Docket2:17-cv-02245
StatusUnknown

This text of ENDO PHARMACEUTICALS INC. v. FRYER (ENDO PHARMACEUTICALS INC. v. FRYER) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ENDO PHARMACEUTICALS INC. v. FRYER, (E.D. Pa. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

ENDO PHARMACEUTICALS INC., : : Plaintiff, : : CIVIL ACTION v. : : NO. 17-2245 CINDY FRYER, : : Defendant. :

MEMORANDUM Tucker, J. August 14, 2020 Before the Court is Defendant Endo Pharmaceuticals’ Motion to Dismiss seven of eight counterclaims that Cindy Fryer asserted against it. After considering Endo’s Motion to Dismiss, Fryer’s Response, and Endo’s Reply, Endo’s Motion is GRANTED IN PART AND DENIED IN PART. The Court GRANTS Endo’s Motion to Dismiss counterclaim count three in full, and in part for counts five, six, and seven. The Court DENIES Endo’s Motion to Dismiss counterclaim counts two, four, and eight. The Court also considers individual counterclaim Defendants Smith and Wallace’s Motion to Dismiss count eight of Fryer’s counterclaim. The Court DENIES the individual Defendants’ Motion to Dismiss. I. FACTUAL BACKGROUND Cindy Fryer worked in the Treasury Department of Endo Pharmaceuticals Inc., from January 2010 until she was terminated in January 2017. 3d Am. Answer, 11–24, ECF No. 35. She was hired in 2010 to be Endo’s Director of Treasury Planning, Analysis and Operations. 3d Am. Answer, 11. Fryer alleges that shortly after Endo hired her, she learned that similarly tenured younger male employees received stock bonuses. 3d Am. Answer, 13. Fryer claims that she was not given a similar award until after she complained about the inequality. 3d Am. Answer, 13. In February 2011, Fryer was promoted to Senior Director. 3d Am. Answer, 13. Fryer

alleges that when she was promoted to Senior Director, similarly situated younger males in the Finance Department were promoted to become Vice Presidents. 3d Am. Answer, 13. Fryer claims that between 2011 and 2015, Endo passed over her multiple times to fill vacancies in upper-level finance positions. 3d Am. Answer, 13–14. Fryer claims that younger males were largely chosen to fill those vacancies instead. See 3d Am. Answer, 13–14. During the second half of 2014, Fryer served as Interim Treasurer during Endo’s search for a permanent Treasurer. 3d Am. Answer, 14. Fryer claims that, in late 2014, the Chief Financial Officer told her that she would be promoted to the Vice President level. 3d Am. Answer, 15. However, during Fryer’s tenure as Interim Treasurer, Endo made other personnel changes in its Finance Department. 3d Am. Answer, 15–16. Around August 2014, Endo hired Larry Smith as

Senior Vice President of Tax. 3d Am. Answer, 15. A few months later, in early 2015, Endo hired Karen Wallace as Senior Vice President and Treasurer. 3d Am. Answer, 16. Wallace served as Fryer’s supervisor. 3d Am. Answer, 16. Fryer claims that the new hires, Smith and Wallace, discriminated against her because of her age and gender. 3d Am. Answer, 15–22. Fryer claims that Smith often made discriminatory and harassing remarks about her age. 3d Am. Answer, 15–16. Fryer claims that Wallace made antagonistic comments about her gender, including saying that she did not like to work alongside other strong females. 3d Am. Answer, 16. Fryer claims that Wallace gave her the first negative performance review in her time at Endo and denied her the previously-promised promotion to become a Vice President. 3d Am. Answer, 16. Fryer further claims that Wallace reassigned some of her job duties to make Fryer’s role duplicative; a move ultimately used to justify Fryer’s termination. 3d Am. Answer, 24. Fryer alleges that similarly situated male colleagues were paid more than her for similar work

and that younger males were unfairly preferred and promoted over her during her career at Endo. 3d Am. Answer, 18. Fryer alleges that she reported the conduct of both Wallace and Smith to the CFO and Human Resources, but that her complaints were either ignored or not adequately addressed. 3d Am. Answer, 16–18. II. PROCEDURAL HISTORY

After terminating Fryer, Endo claims to have discovered multiple instances in which Fryer attempted to misappropriate and embezzle company funds, leading to the instant lawsuit. Mem. Supp. Mot. Dismiss 4, ECF No. 38. Endo filed a Complaint against Fryer on May 16, 2017, asserting claims for fraud, conversion, breach of contract, breach of the fiduciary duty, unjust enrichment, constructive trust, and a demand for an accounting. See Compl., ECF No. 1. In July 2017, Fryer filed an Answer and Counterclaims against Endo alleging breach of contract and implied covenant of good faith dealing as well as conversion. Answer, 20–21, ECF No. 5. Fryer subsequently filed three amended Answers which included additional counterclaims and added Larry Smith and Karen Wallace as individual counterclaim defendants. See, Am. Answers, ECF Nos. 18, 26, and 35. Fryer’s Third Amended Answer, Affirmative Defenses and

Counterclaims—the operative Answer for the Court’s analysis—was filed in March 18, 2019. 3d. Am. Answer, ECF No. 35. In that document, Fryer brings eight counterclaim counts against Endo including: (1) breach of contract and implied covenant of good faith and fair dealing; (2) defamation; (3) violations of the Equal Pay Act; (4) violations of the Fair Labor Standards Act (“FLSA”); (5) violations of the Pennsylvania Wage Payment and Collection Law (“WPCL”); (6) violations of Title VII of the Civil Rights Act; (7) violations of the Age Discrimination in Employment Act (“ADEA”); and (8) violations of the Pennsylvania Human Relations Act (“PHRA”). 3d. Am. Answer 31–38. Fryer also asserts count eight for violating the PHRA

against individual counterclaim Defendants, Karen Wallace and Larry Smith. 3d. Am. Answer, 38. In response, counterclaim Defendant, Endo, filed its Motion to Dismiss Seven of Defendant's Eight Counterclaims on May 8, 2019. Mot. Dismiss Countercl., ECF No. 38. Individual counterclaim defendants, Larry Smith and Karen Wallace filed a Motion to Dismiss count eight of Fryer’s counterclaims in June and July 2019. ECF Nos. 43, 44.

III. STANDARD OF REVIEW When considering a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6), the Court must “accept all factual allegations as true [] [and] construe the complaint in the light most favorable to the plaintiff.” Argueta v. U.S. Immigration & Customs Enforcement, 643 F.3d 60, 74 (3d Cir. 2011). However, the Court is “not bound to accept as true a legal conclusion couched as a factual allegation.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). To survive a 12(b)(6) motion, a complaint must contain sufficient factual allegations to state a claim for relief that is “plausible on its face.” Sheridan v. NGK Metals Corp., 609 F.3d 239, 262 n.27 (3d Cir. 2010) (quoting Iqbal, 556 U.S. at 678). This “requires more than labels and conclusions, and a formulaic recitation of a cause of action’s elements will not do.” McTernan v.

City of York, 564 F.3d 636, 646 (3d Cir. 2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 545 (2007)). A claim is plausible if the complaint presents facts that allow the Court to reasonably infer wrongdoing by the defendant. Iqbal, 556 U.S. at 678. The plausibility requirement does not require that a complaint demonstrate that defendant’s wrongdoing was probable. Twombly, 550 U.S. at 556. Federal Rule of Civil Procedure

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ENDO PHARMACEUTICALS INC. v. FRYER, Counsel Stack Legal Research, https://law.counselstack.com/opinion/endo-pharmaceuticals-inc-v-fryer-paed-2020.