Guyton v. Novo Nordisk, Inc.

151 F. Supp. 3d 1057, 2015 U.S. Dist. LEXIS 169012, 2015 WL 9165954
CourtDistrict Court, C.D. California
DecidedDecember 16, 2015
DocketCASE NO. CV 15-00009 MMM (AGRx)
StatusPublished
Cited by4 cases

This text of 151 F. Supp. 3d 1057 (Guyton v. Novo Nordisk, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Guyton v. Novo Nordisk, Inc., 151 F. Supp. 3d 1057, 2015 U.S. Dist. LEXIS 169012, 2015 WL 9165954 (C.D. Cal. 2015).

Opinion

ORDER GRANTING DEFENDANT’S' ” MOTION FOR SUMMARY t JUDGMENT

MARGARET M. MORROW, UNITED STATES DISTRICT JUDGE

On September 5, 2014, Andrew Guyton sued Novo Nordisk, Inc. (“Novo Nordisk”) and various fictitious defendants, alleging claims of race and age. discrimination, as well as retaliation, under California’s Fair Employment and Housing Act, Government Code § 12900 et seq. (“FEHA”); he also pled a claim for-wrongful discharge in violation of public policy.1 Novo Nordisk was served on December 5, 2014,2 and timely removed the action to federal court on January 2, 2015, invoking the court’s diversity jurisdiction.3

On November .16, 2015, Novo Nordisk moved for summary judgment.4 Guyton opposes the motion.5

I. FACTUAL BACKGROUND

A. Novo Nordisk and Its Relevant Policies i

Novo Nordisk is a pharmaceutical company that develops, markets, and sells drugs designed to treat-patients suffering from Type I and Type II diabetes.6- As described by one of Novo Nordisk’s managers, Jill Sutton, Novo Nordisk’s sales professionals and sales managers are organized into regions, which iii turn are divided.-up sales districts. The sales districts are divided into sales territories.7 Regions are overseen by “regional sales directors,” while sale districts are overseen by “district managers.”8 Field sales professionals — who are responsible for marketing and selling products to health care professionals (“HCPs”) — are assigned to. a particular-sales territory.9 Within Novo Nor-disk, field,-sales professionals are referred to as Diabetes Care Specialists (“DCSs”).10

[1062]*1062' In marketing and selling products to HCPs, DCSs regularly make certain ¡expenditures for the benefit of HCPs; these include buying them meals and gifts.11 Partly because of this, pharmaceutical companies operating in the United States are subject to certain laws that restrict their access to and interactions with HCPs. One of these is an “anti-kickback law,” which requires that pharmaceutical companies trace and publicly disclose their expenditures associated with HCP interactions.12 Novo Nordisk asserts that it is committed to complying with these regulations,13 and identifies two handbooks (a 2011 “U.S.Code of Business Conduct” and a, 2013 “Business Ethics Policy”) that are given to Novo Nordisk employee^. -These handbooks reference relevant laws and summarize thirteen different laws, regulations, and administrative guidelines.14

Because of the laws and regulations that govern its sales efforts, Novo- Nordisk has adopted written policies that place limits on the manner in which DCSs may interact with HCPs. One of these policies re quires that DCSs limit the frequency, amount, and type of - expenditures they make in visiting HCPs, both to comply with relevant regulations and to avoid the appearance of impropriety.15 The policies also require that DCSs record detailed information concerning each expenditure made, including the amount' and type of expenditure and-the name of all individuals — both HCPs and Novo Nordisk employees — present at each meal or other activity related- to the expenditure; ■ these records are publicly disclosed.16 Additionally, Novo Nordisk policy mandates that DCSs enter their field sale expenses on a bi-weekly schedule.17 It also requires that DCSs record a log of each sales call they make to. HCPs;, this allows management to match recorded expenditures with recorded calls to help ensure accuracy.18 Guyton does not dispute that Novo" Nordisk has enacted these written policies; he asserts, however, that Novo Nordisk is not genuinely committed to regulatory compliance, that management places “blind emphasis on selling,” and that it encourages DCSs to engage in sales practices that violate the law and its written policies.19

B. Guyton’s Employment and Disciplinary Issues

Novo Nordisk hired Guyton as a DCS in March 2007.20 During his approximately seven year tenure at the company, Guyton failed on certain occasions to comply with several of Novo Nordisk’s policies.21 Guy-ton’s call logs" from January 2012 through May 2013 -reflect,, numerous instances in [1063]*1063which a sales call was not logged the day the call was made, as required by policy.22 In August 2012 alone, for example, Guyton logged more than forty, sales calls late; ten of these were entered at least two weeks late.23 Between October 2012 and the first half of November 2012, Guyton logged more than 100 sales calls at least two weeks late.24 Between March 6 and May 24, 2013, Guyton logged more than seventy-five calls late; approximately thirty were entered at least a week late.25' In addition to logging calls late, Guyton also failed to comply with Novo Nordisk’s policy requiring that DCSs record sales ex7 penses on a bi-weekly basis. On April 9, 2012, for example, Guyton entered more than thirty field sales expenditures that he had made over forty-five days earlier.26 Likewise, on July 19, 2012, Guyton entered more than twelve field sales expenditures, all of which he had incurred at least three months earlier.27 In October and November 2012, Guyton’s expense reports reflect at least five sales expenditures that Guyton had incurred at least thirty days earlier.28 During this period, no other employee reporting to Guyton’s supervisor, Sutton, consistently fell behind in logging calls and recording expenses.29

In November-'2012, Guyton was- placed on an “action plan” — -a probationary form of discipline at Novo Nordisk.30 Deanna Canepa, a regional field director, who supervised the Southern California district while Sutton was on maternity leave, asserts that Guyton was placed on an action plan “as a result of his continued failure to abide by [Novo. Nordisk’s] express policies.” 31 . Guyton does not dispute that he was placed on a disciplinary action plan; he contends, however, that this was - not because he had failed to adhere to Novo Nordisk policies, and that his lack of compliance “is a fact gathered retroactively in an effort to support [Novo Nordisk’s] discriminatory and retaliatory ■actions.”'32 Nonetheless, the copy of the action plan Guyton received identified two -bases for the disciplinary action: his' failure to log calls- during the work hours the calls were made, and his failure to file expense reports within five days of the end of each bi-weekly period.33 Guyton testified at his 'deposition that he understood that the reasons he was placed on an action plan were .his failure to record telephone calls to physicians in a timely fashion and his failure to submit timely expense reports.34 After Guyton was placed on an action plan, [1064]

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151 F. Supp. 3d 1057, 2015 U.S. Dist. LEXIS 169012, 2015 WL 9165954, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guyton-v-novo-nordisk-inc-cacd-2015.