<font color="red">DO NOT FILE IN THIS CASE</font> TRANSFERRED TO CAMDEN NEW CIVIL ACTION NO. 1:22-cv-2370

District Court, D. New Jersey·Decided August 9, 2022·No. 3:22-cv-02370·Unknown

Opinion

*NOT FOR PUBLICATION*

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

JOHN MCKENNA,

Plaintiff, Civil Action No. 22-02370 (FLW) v.

VERINT AMERICAS INC., OPINION DAVID ZEMBER, JACKIE HUDSON, TIMOTHY WILKIE, JOHAN DE JONG, CASEY GEORGE, BRAD RAMSEY, ABC CORPORATIONS 1-5 (fictious names describing presently unidentified business entities); and JOHN DOES 1-5 (fictious names describing presently unidentified individuals),

Defendants.

WOLFSON, Chief Judge: Presently before this Court is Plaintiff John McKenna’s (“Plaintiff”) motion to remand this employment action to state court. Plaintiff submits that because one of the named defendants, Timothy Wilkie (“Wilkie”), is a citizen of New Jersey, removal violated the forum defendant rule. Further, Plaintiff argues that since his complaint asserts a “colorable claim” against Wilkie, defendants, Verint Americas Inc. (“Verint”), David Zember (“Zember”), Jackie Hudson (“Hudson”), Johan De Jong (“De Jong”), Casey George (“George”) and Brad Ramsey (“Ramsey”) (“Defendants”), fail to meet the “heavy burden” of demonstrating that Wilkie was fraudulently joined. Plaintiff’s motion also requests attorney’s fees. For the following reasons, I find that Wilkie was fraudulently joined, and therefore, removal to this Court was proper. Plaintiff’s motion to remand is DENIED. I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY The relevant facts are derived from Plaintiff’s Initial Complaint to the Superior Court of New Jersey (“Compl.”), and taken as true. Plaintiff resides in Bayville, New Jersey. Compl. ¶ 1. At all relevant times, Plaintiff was

employed by Verint as Vice President of Business Development. Id. At Verint, Plaintiff specialized in increasing productivity and efficiency for retail banks that were clients of Verint. Id. at ¶ 13. Verint is a global corporation based in Melville, New York. Id. at ¶ 2. Wilkie, a New Jersey citizen, was at all relevant times the Senior Account Executive at Verint. Id. at ¶ 5. There is no dispute that Wilkie was not Plaintiff’s supervisor or otherwise managed Plaintiff’s employment in any way. Plaintiff alleges that he was wrongfully terminated for disclosing, and objecting to, various acts of fraud that were being committed by Defendants against both Verint and its clients. ECF No. 1, Compl. ¶ 93. As to Wilkie, the Complaint alleges that Wilkie engaged in a fraudulent act and retaliated against Plaintiff after Plaintiff prevented Wilkie from carrying out the fraud. Id. at ¶ 86.

In or around 2019, Plaintiff and Wilkie agreed to work together on an opportunity to provide sales and services to Citibank. Id. at ¶ 23. Due to this agreement, Plaintiff informed his manager that the prospective opportunity should be placed in Verint’s “exception list[,]” which would allow Wilkie to earn commission based on the work performed. Id. at ¶ 24. However, Plaintiff alleges that it “became clear that Plaintiff was performing all of the substantive work. . ., while Defendant Wilkie failed to participate.” Id. at ¶ 25. According to Plaintiff, Wilkie would occasionally ask for updates, and Plaintiff believed that Wilkie used these updates to falsely represent that he was a part of the project and to submit reports into Verint’s Salesforce accounting software. Id. at ¶ 26. Plaintiff alleges Wilkie falsely represented his participation in the project because, in the event of a sale of the Citibank project, Wilkie could claim significant commissions. Id. at ¶ 27. As a result, Plaintiff believed that Wilkie was attempting to defraud Verint and its shareholders, and that Wilkie’s conduct allegedly violated federal and state banking laws. Id. at ¶ 28. Subsequently, Plaintiff reported Wilkie to his supervisors within Verint. Id. at ¶¶ 29-30. Shortly

thereafter, Plaintiff alleges that Wilkie began to “retaliate” against Plaintiff for objecting to the fraud. Id. at ¶ 43. Specifically, Plaintiff alleges that Wilkie committed the following acts of retaliation against Plaintiff, which culminated in Plaintiff’s wrongful termination: [1] Defendant Wilkie attempted to dissuade Plaintiff from reporting the fraud and/or asked him to look the other way; [2] Plaintiff received a number of angry emails and phone calls from Defendant Wilkie; [3] Defendant Wilkie wrote to Plaintiff that the prospective Citibank sale “will make or break my year[;]” [4] Defendant Wilkie sought to punish Plaintiff for his interference with the fraudulent scheme he was committing against Defendant Verint and its shareholders.

Compl. ¶¶ 35-37, 43-47. In 2020, the sales opportunity with Citibank was still ongoing. Id. at ¶ 31. During this time, Verint investigated Wilkie after Plaintiff submitted a statement that Wilkie “has not participated” in the prospective Citibank project. (Pl. Mem. at 7.) As a result of the investigation, the prospective opportunity was removed from Verint’s “exception list.” Compl. ¶ 32. Thus, in the event of a sale, Wilkie would not receive a commission. Id. Subsequently, Plaintiff alleges that Wilkie complained to his supervisor, Zember1, who, allegedly, was also set to lose money from the delisting of the Citibank project from the “exception list.” Id. at ¶ 33.

1 Defendant Zember is an individual residing in Georgia. At all times relevant hereto, Zember was employed by Verint as an Area Vice President of Sales. Compl. ¶ 3. In 2021, Zember became Plaintiff’s direct supervisor. Id. at ¶ 44. Plaintiff claims that he was alarmed by the prospect of Zember’s supervision, because Plaintiff feared retaliation from Zember due to Plaintiff’s reporting of Wilkie’s illicit activity. Id. at ¶ 45. In Plaintiff’s first one- on-one meeting with Zember, Plaintiff asked if there would be a conflict of interest due to

Plaintiff’s experience with Wilkie on the Citibank project, and Zember allegedly promised there would not be. Id. at ¶ 47. In October 2021, Plaintiff reported Zember to Hudson2 (Zember’s supervisor) for allegedly encouraging Plaintiff to falsify expense reports. Id. at ¶ 52. Plaintiff alleges that, had he filed that false report, he would have been terminated. Id. at ¶ 54. Plaintiff believed Zember was attempting to sabotage his employment with Verint in retaliation for Plaintiff’s objections to Wilkie receiving a commission on the Citibank opportunity. Id. In November 2021, Plaintiff expected to close on a deal with Huntington Bank when, according to Plaintiff, Zember sought to “wet [his] beak[]” in the sale made solely by Plaintiff. Id. at ¶¶ 57, 60. Allegedly, “Zember and Ramsey3 determined that they could ‘get away with’ selling XM Solutions product4 to Huntington Bank by including it in the deal for ‘free,’ but internally,

Defendants would falsely report to Defendant Verint that the sale of XM Solutions earned Defendant Verint approximately $60,000.00 by subtracting this sum from the amount that Plaintiff was [already] set to sell.” Id. at ¶ 59. According to Plaintiff, he believed Zember placed him in a position to misrepresent to Mr. Carter (Plaintiff’s client from Huntington Bank) about the sudden

2 Defendant Hudson is an individual residing in the District of Columbia. At all times relevant hereto, Hudson was employed by Verint as Vice President and General Manager. Compl. ¶ 4. 3 Defendant Ramsey is an individual residing in Georgia. At all times relevant hereto, Ramsey was employed by Verint as a Vice President of Sales. Compl. ¶ 8. 4 “A product that Defendant Ramsey was in charge of selling.” Compl. ¶ 58. additional product, and take a “haircut” in the amount earned from the initial deal. Id. at ¶ 61. Thus, Plaintiff disclosed the additional product to Mr. Carter, who responded that Huntington Bank did not want to purchase the XM solutions. Id. at ¶ 62. Plaintiff then spoke to Hudson, who stated that “this is not how [Defendant] Verint conducts business[,]” and that the scheme was “wrong,” and

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